A Harvey Norman franchisor in Queensland, HN Macgregor Franchisor Pty Ltd, has paid a $15,650 penalty for allegedly breaching the Franchising Code of Conduct.
HN Macgregor paid the penalty after the ACCC issued it with an infringement notice for allegedly failing to include mandatory information on the Franchise Disclosure Register before entering into an agreement with a franchisee in July 2024.
The Franchise Disclosure Register, which is hosted by the Australian Government, exists to increase transparency in franchising and assist prospective franchisees in making an informed business decision. Information on the register includes set-up costs and ongoing payments that the franchisee will need to make.
"A franchisor's failure to publish up-to-date information on the disclosure register undermines transparency for prospective franchisees, and the reliability and integrity of the register," ACCC Deputy Chair Catriona Lowe said.
"Many of the laws governing the franchising sector relate to information disclosure and are necessary because of the power imbalance between franchisor and franchisee."
"Entering a franchise agreement is a significant financial decision and the register contains important information to inform this decision. Franchisees should be able to rely on the fact that all relevant information has been disclosed on the register," Ms Lowe said.
"The franchising sector should be on notice that failure to comply with the Franchising Code of Conduct may result in enforcement action by the ACCC."
One of the ACCC's current compliance and enforcement priorities is to ensure small businesses receive the protections of competition and consumer laws, including industry codes of conduct.
Background
HN Macgregor is the franchisor for the Harvey Norman complex in Macgregor, Queensland.
There are approximately 200 franchised Harvey Norman stores operating in Australia.
Note
The ACCC is responsible for regulating industry codes that are prescribed under the Competition and Consumer Act, including the Franchising Code of Conduct. The Franchising Code of Conduct is a mandatory national code that regulates the conduct of franchising participants towards each other.
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions of an industry code.
A person or business is not regarded as having contravened the provision of the industry code merely by paying the penalty specified in an infringement notice.
On 18 March 2025, the Government announced it will provide $7.1 million over two years to strengthen the ACCC's enforcement of the Franchising Code of Conduct. This funding uplift enables the ACCC to undertake more education, enforcement and engagement in the franchising sector.
