The Federal Government is set to bolster support for the franchising sector in Eden-Monaro, with new measures aimed at strengthening the Franchising Code of Conduct. This initiative will extend protections against Unfair Contract Terms and Unfair Trading Practices to all businesses regulated under the Code, as outlined in a recent announcement by Kristy McBain, Member for Eden-Monaro.
PHOTO: Strengthening enforcement of the Franchising Code of Conduct aims to ensure there are consequences for bad behaviour.
In a move to back local enterprises, particularly automotive dealerships in the region, the government is committing $7.1 million over the next two years to enhance the enforcement capabilities of the Australian Competition and Consumer Commission (ACCC). This funding will underpin the ACCC’s efforts to uphold the new Franchising Code of Conduct, which takes effect from April 1, 2025.
Kristy McBain stated, “Strengthening enforcement of the Franchising Code of Conduct and extending greater protections to all businesses regulated by the Code will not only promote healthy competition, but it will ensure there’s consequences for bad behaviour.”
PHOTO: New Toyota Landcruiser at High Country Automotive Group – Cooma CREDIT: High Country Automotive Group.
Franchisees often face vulnerabilities due to Unfair Trading Practices, where franchisors may control critical business aspects such as branding and supply chains. The upcoming reforms aim to rectify such power imbalances, fostering fairer relationships between franchisees and franchisors. “Our local businesses work hard, they employ and up-skill our local people, and they’re critical to our local economy,” Ms McBain commented.
In addition, the Government will prioritise work to count emissions under the New Vehicle Efficiency Standard at the point of sale, rather than when a vehicle is imported to Australia.
These steps are part of a broader strategy to prevent adverse impacts from international business practices and were spurred by feedback from Eden-Monaro’s automotive businesses about significant power disparities in the sector.