Originally Published 1st July 2009
On 23 March 2009, the ACCC announced that it had not objected to the collective bargaining notification of Wizard Home Loan franchisees wishing to negotiate their agreements with Aussie Home Loans and GE Money.
The ACCC said that allowing collective bargaining in this situation would result in transaction costs savings to the group and enable the group to best consider their options in the limited time available.
If two or more competitors, such as franchisees, wish to collectively negotiate terms and conditions with a supplier (such as the franchisor) or customer, they may notify the ACCC to seek protection from legal action under the Trade Practices Act (TPA). Provided the ACCC does not object to the notified arrangement, protection commences 14 days after lodgement of the notification.
Under the TPA, the ACCC will only object to and remove the immunity provided by a collective bargaining notification when it is satisfied that any public benefits from the proposed arrangement do not outweigh the public detriment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
