Australian Mobile Phone Retailer Sued

The Australian Competition and Consumer Commission has commenced proceedings in the Federal Court in Sydney against the mobile phone seller - Allphones Retail. The ACCC alleges that, in operating this franchise system, Allphones failed to comply with Franchising Code of Conduct and engaged in misleading and deceptive conduct and unconscionable conduct towards its franchisees.

Allphones Retail operates a franchise system where it controls the distribution of all products and income to franchisees and negotiates agreements with third parties on franchisee's behalf.

Proceedings have also been taken against Allphones' director and Chief Executive Officer, Mr Matthew Donnellan; director and Chief Operating Officer, Mr Tony Baker; and former National Franchising Manager, Mr Ian Harkin, for allegedly being knowingly concerned in or party to the contravening conduct.

The ACCC also alleges that Allphones engaged in false or misleading and deceptive conduct towards potential and current franchisees. This includes allegations that Allphones misrepresented how it shares profits with franchisees, bargains with third parties on behalf of its franchisees and operates its franchise system.

Posted to the site on 27th March 2008