Allphones faces class action from ACCC

Regulatory body lauches court action for 74 franchisees alleging breaches of contract and law

The Australian Competition and Consumer Commission (ACCC) has begun class action proceedings against Allphones Retail and three associated individuals on behalf of 74 current and former franchisees.

The action is based on existing Federal Court proceedings brought by the ACCC against Allphones and its CEO, Matthew Donnellan, director and COO, Tony Barker and its former national franchising manager, Ian Harkin, for alleged breaches of the Trade Practices Act (1974).

As a result of those proceedings, the court ordered injunctions against Allphones, which also agreed to interim undertakings. A court date has yet to be set for the completion of the case.

The regulatory body alleges Allphones received commissions and bonus payments from telcos that weren’t discussed with or passed onto franchisees, that it behaved similarly with mobile phone handset supplier rebates and that it made deductions from commission payments meant for franchisees in breach of franchise agreements.

The ACCC is seeking damages for losses sustained by the class action participants along with legal costs.

The class action is set to reach the Federal Court for directions by Justice Lindsay Graeme Foster on September 8.

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