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Admittedly these two restaurants are not franchises however the warning is there that the Australian Competition and Consumer Commission will take new powers out for a run. At $13,000 a hit it can be expected that restaurants in particular, but not only, will now take notice.
The ACCC alleged that the menus failed to tell customers the full price they would pay on a Sunday or a public holiday, relying instead on a qualification indicating the application of a percentage surcharge. To know the true charge, customers would have to add the surcharge on such days. ACCC
New Component Pricing Legislation laws were introduced in May 2009.
The ACCC takes its new powers very seriously. It is ready and able to use them to great effect, when necessary. Most importantly, such civil penalties, allow the ACCC to seek proportionate responses to breaches and enables it to more effectively promote compliance with the law.
The restaurant sector appears to have some of the problems facing small franchisors. In this case the advantage of using media to send a message is quite clear.
Our board is absolutely furious with the way this has been dealt with, there is so much anticompetitive behaviour and yet so many bigger players get away totally unscathed. Because they won't pick a fight with them, they go after the smaller players. SmartCompany
All of franchising should be paying attention. In August this year franchise Fitness First were taken to task.