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ACCC launches further action against Allphones

Regulatory body Alleges Allphones breached Federal Court orders

The Australian Competition and Consumer Commission (ACCC) is launching more Federal Court proceedings against Allphones Retail Pty Ltd for allegedly being in contempt of court.

Earlier this week the ACCC began class action proceedings against Allphones on behalf of 74 franchisees.

The regulatory body alleges the company breached two undertakings made by Justice Foster in the Federal Court on October 9, 2008.

Undertaking eight aimed to prevent Allphones from refusing franchise agreements because the franchisee refused to sign a liability waver for the company.

Undertaking nine required Allphones to give the ACCC seven days of written notice when it intended to withhold the assignment of a franchise because the new franchisee had to enter into a new agreement.

According to the ACCC, Allphones allegedly violated undertaking eight once and undertaking nine three times.

A directions hearing will be held in Sydney on August 21.