Login
ISCOVER
Australian Loans Management has come under investigation by the Australian Competition and Consumer Commission (ACCC) for failing to comply with the Franchising Code of Conduct.
According to the ACCC, Australian Loans Management promoted and sold ‘licence agreements’ for a finance broking business called Active Money.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The company breached the Trade Practices Act 1974 by claiming the licence agreements were not franchise agreements, when in fact they were.
ACCC chairman Graeme Samuel said Australian Loans Management had admitted its licence agreement was a franchise agreement and that it did not comply with the Code.
It also admitted it misled franchisees by stating that the licence agreement was not a franchise agreement and thereby potentially misled franchisees into believing that they were not entitled to the rights and remedies afforded by the Code.
Australian Loans Management has since undertaken various measures to ensure future compliance with the Code, to provide existing franchisees with a copy of the Code, a disclosure document and a proposed franchise agreement that complies with the Code.
The company will also provide existing franchisees with the opportunity to cancel their existing licence agreement and obtain a full refund of all monies paid.
