The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Brisbane against ice cream franchisor Ice Creameries of Australia Pty Ltd; former managing director, David Atchison; national marketing manager, John Berry; and national products manager Jenni Berry.
Ice Creameries of Australia is the franchisor of the well known national ice cream franchise system Great Australian Ice Creamery.
In its Statement of Claim, the ACCC alleges that Ice Creameries of Australia, Mr Atchison and the Berrys engaged in misleading, deceptive and false conduct in connection with the promotion and sale of GAIC franchises throughout Australia.
It is alleged that representations made by ICA, Mr Atchison and the Berrys that particular franchise sites would be suitable and that certain profit levels could be expected, were misleading and deceptive.
It is also alleged that ICA engaged in exclusive dealing conduct, requiring its franchisees to purchase stock and equipment, and ongoing supplies through nominated suppliers. It is alleged that ICA then received rebates from these suppliers.
It is alleged that as a result of this conduct, a number of franchisees found their businesses were unprofitable, and lost significant amounts of money.
The ACCC is seeking injunctions, a penalty, declarations that the parties engaged in the alleged conduct, findings of fact, injunctions requiring the company to implement a corporate compliance program and orders for compensation under s.87(1B) of the Trade Practices Act.
A directions hearing will be held at the Federal Court, Brisbane on 24 April at 10.15am.
Ice Creameries of Australia is the franchisor of the well known national ice cream franchise system Great Australian Ice Creamery.
In its Statement of Claim, the ACCC alleges that Ice Creameries of Australia, Mr Atchison and the Berrys engaged in misleading, deceptive and false conduct in connection with the promotion and sale of GAIC franchises throughout Australia.
It is alleged that representations made by ICA, Mr Atchison and the Berrys that particular franchise sites would be suitable and that certain profit levels could be expected, were misleading and deceptive.
It is also alleged that ICA engaged in exclusive dealing conduct, requiring its franchisees to purchase stock and equipment, and ongoing supplies through nominated suppliers. It is alleged that ICA then received rebates from these suppliers.
It is alleged that as a result of this conduct, a number of franchisees found their businesses were unprofitable, and lost significant amounts of money.
The ACCC is seeking injunctions, a penalty, declarations that the parties engaged in the alleged conduct, findings of fact, injunctions requiring the company to implement a corporate compliance program and orders for compensation under s.87(1B) of the Trade Practices Act.
A directions hearing will be held at the Federal Court, Brisbane on 24 April at 10.15am.