Australian Competition and Consumer Commission v Seal-A-Fridge Pty Ltd [2010] FCA 525

FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Seal-A-Fridge Pty Ltd [2010] FCA 525 Citation: Australian Competition and Consumer Commission v Seal-A-Fridge Pty Ltd [2010] FCA 525

Parties: AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v SEAL-A-FRIDGE PTY LTD ACN 080 116 258 and NIGEL JOHN ROONEY

File number: QUD 184 of 2008

Judge: LOGAN J

Date of judgment: 28 MAY 2010

Catchwords: TRADE PRACTICES – Unconscionable conduct – Franchise agreements – Where franchisor attempted to and obtained greater fee payments from franchisees under franchise agreements – Where franchise agreements did not contemplate the increases in the amount obtained – Where franchisor used ascended position over franchisees to demand increased fees – Whether whole circumstances of franchisor's conduct was unconscionable – Whether director of franchisor was a person involved in the contraventions. Held: Franchisor's conduct viewed as a whole amounted to unconscionable conduct within the meaning of s 51AC of the Trade Practices Act 1974 (Cth); director was a person involved. TRADE PRACTICES – Alleged breaches of Franchising Code of Conduct (Cth) –Whether franchisor breached the Franchising Code of Conduct (Cth) by failing to provide disclosure document pursuant to requests from franchisees or otherwise as required – Whether director of franchisor was a person involved in the breach of the Franchising Code of Conduct. Held: Contraventions of s 51AD of the Trade Practices Act 1974 (Cth) by failure to provide necessary documentation to franchisees in accordance with the Franchising Code of Conduct (Cth) established; director was a person involved.