Franchise Bullying Costs Allphones $3m

‎The Australian:

Embattled mobile phone retailer Allphones has been ordered to pay $3 million in damages to scores of its franchisees for engaging in unconscionable conduct, including the introduction of a “no dickheads” policy.

Fifty-five franchisees will share the $3m payout — about $55,000 each — after judge Lindsay Graeme Foster of the Federal Court found Allphones and three executives — Matthew Donnellan, Tony Baker and Ian Harkin — engaged in a campaign to bully dissenting franchisees to bring them into line.

“This is some of the worst conduct encountered by the ACCC in dealing with franchisees,” said the watchdog’s acting chairman, Peter Kell.

“It was both systemic and prolonged. I can only imagine how a franchisee caught on the wrong side of such policies, with their livelihood on the line, must have felt.”

The Australian flagged the impending damages payout earlier this month when it revealed that Communications Minister Stephen Conroy had advance knowledge of a deal, before franchisees and possibly even the ACCC.

Leave a Comment

Your email address will not be published. Required fields are marked *