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Allphones fined $45,000 for contempt of Court

The mobile phones retailer in trouble for breaching court orders regarding treatment of franchisees

Mobile phones retailer, Allphones, has been slapped with a $45,000 fine for violating Court orders issued in 2008.

The company resells Optus and Vodafone services through a number of franchised stores across the country.

The Australian Competition and Consumers Commission (ACCC) took Allphones to the Federal Court three years ago on behalf of the retain chain’s franchises. It was alleged Allphones provided franchisees with incorrect and possibly misleading information on dispute resolution with the business.

Allphones was required to conform to several Court enforceable undertakings, two of which it has been accused of breaching. This includes withholding consent to the assignment of an Allphone franchise if franchisees would not signed a deed to release Allphones from liability.

ACCC must also be told within seven days if Allphones wanted to withhold consent to assignment of a franchise should the retailer want a new franchisee to enter into a new agreement.

Justice Nicholas, who has been looking into these breaches, said Allphones’ conduct was both “serious” and “deliberate” since they were committed by senior personnel.

Allphones has admitted fault.

ACCC chairman, Graeme Samuel, said in a statement the fine shows the consumer watchdog and the Court takes breaching of Court orders very seriously.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ACCC, Allphones, Optus, Vodafone

Comments

1

Rod

Thu 21/07/2011 - 14:14

Is this correct? "..... withhold content to assignment of a franchise".

Suspect something is not right with the wording.

2

Spandas

Thu 21/07/2011 - 14:34

@Rod - Sorry. Was meant to be "withhold consent". Fixed now.

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