Consultation on the Franchising Code Review is now open, with the Government releasing a consultation paper seeking feedback to inform the Independent Review of the Franchising Code of Conduct.
The AADA welcomes the release of the consultation paper as an opportunity to examine the effectiveness of the Franchising Code of Conduct in fostering a fair and transparent business environment for new car and truck Dealers.
The consultation paper seeks feedback on:
- The general fitness for purpose of the Franchising Code.
- The role of the Australian Competition and Consumer Commission and the Australian Small Business and Family Enterprise Ombudsman in supporting enforcement and dispute resolution under the franchising regulatory framework.
- The role of the Franchising Code in regulating the automotive sector.
- The impact of 2022 reforms which increased certain penalties available under the Franchising Code.
- Provisions in the Franchising Code related to the Franchise Disclosure Register.
The AADA’s response will highlight key areas of concern for the industry. These include the expansion of franchising protections to truck Dealers and other automotive franchised Dealers, improving access to justice, expansion of Unfair Contract Terms protections, general issues with the move to an agency model in the automotive industry and ensuring appropriate tenure of agreements.
The AADA will continue to engage with members throughout the review to inform the AADA’s response to the consultation paper and encourages members to also provide their own responses. Please reach out to the AADA Team for any assistance required in preparation or submission of responses.
The consultation period closes on 29 September 2023 and the consultation paper is available to view online here.