The Australian:
ALLPHONES has been banned from telling franchisees they will be given preferential treatment if they enter into a new agreement with the company.
The court ruling comes after a separate court decision last year, involving franchisee Hoy Mobile, that found Allphones had acted with “calculated dishonesty” and “continuing deceit” by withholding commission payments.
As a result of that decision, franchisees on old agreements were in line to recoup millions of dollars in commissions.
Allphones, which has about 150 stores in Australia, is appealing against that decision. The company is chaired by Tony Mitchell, who sits on the Rudd Government’s expert broadband panel.
Last week, Federal Court judge Lindsay Foster made orders against Allphones, following urgent court action by the Australian Competition and Consumer Commission. A further court hearing is expected to take place in the coming months, with the case relating to events surrounding negotiations between Allphones and franchisees to move from old to new agreements.
The ACCC alleged Allphones threatened to withhold stock from franchisees unless the franchisees signed a new agreement and agreed not to pursue legal action against Allphones for any past breaches of their existing franchise agreements.