ACCC targeting franchises

Late 2013 the Australian Competition and Consumer Commission (ACCC) announced that it would begin targeting franchises in the Health and Fitness and Takeaway Food industries.

A new round of audits will be performed on these businesses to ensure that the franchisors are complying with the Franchising Code of Conduct.

It is important that all franchisors of all industries- not just Health and Fitness and Takeaway Food, review their compliance with the Franchising Code of Conduct.

The ACCC has the power to audit any documents required to be generated under the Franchising Code, such as disclosure statements, marketing statements and franchise agreements. When an audit begins franchisors will be required to produce these documents immediately.

The audit is currently focused on the Health and Fitness and Takeaway Food industries as these industries received the highest number of franchise-related complaints in 2012-13.

However, the ACCC has stated that the audits are not just restricted to these two sectors and that no franchisor is safe from a surprise audit.

A guide to warnings in the workplace

Warnings are an important workplace tool in helping to ensure that employees understand their employer’s expectations.

They also serve as evidence of a fair performance management process and provide supporting evidence should the employee be terminated.

A workplace warning is defined as a communication, be it verbal, or written, to an employee about their performance or conduct at work. Warnings are a tool used to communicate an identified area where an employee needs improvement, or where their conduct does not meet the required standard.

The aim of delivering a workplace warning is to give the employee an opportunity to improve their workplace performance or conduct.

A written warning should be issued after a warning meeting has taken place. At the conclusion of the meeting, the employee is advised that they will be receiving a written warning in the following couple of days.

Generally, most written warnings will comprise of the following:

-record who was present at the warning meeting

-record the fact that the employee was invited to have a support person present

-outline the conduct or performance which is the reason for the warning

-where appropriate refer to a relevant policy or the employment contract

-refer to previous warnings that were issued

-record the employee’s responses to the matters in issue

-clearly state that the employee needs to improve, including an explanation of the consequences for failure to improve

-where relevant, provide support the employee to improve such as training

-preferably be countersigned by the employee as evidence of their understanding of the warning

Refund policies in business

Businesses have specific obligations under Australian Consumer Law (ACL) when it relates to refunds, returns, guarantees and warranties.

Here are some basic tips when constructing a refund policy:

-it is illegal to put up a ‘no refund’ sign in store, or online

-if the product has a major failure the businesses must give a refund, replacement or compensation

-if a product has a minor failure the business must offer to repair, replace or refund

-it is the businesses choice whether to provide a refund if the customer changes their mind

Refund obligations can be placed into two categories; minor and major faults. According to ACL, a major failure is when a product or service fails to meet a consumer guarantee, whereas a minor fault occurs when a problem with the product can be fixed easily and in a reasonable time.

The remedy a business is obligated to provide will depend on whether the fault was major or minor.

When a business receives a refund the first step they should take is to find out, preferably in writing, what the reason is for the refund request. This is valuable information that can be used to improve the businesses products and services.

To prevent there from being issues with refunds businesses should ensure that the refund and return policy is easily accessible by customers. If some goods are unable to be refunded, such as swimwear or perishable products, this must be clearly outlined in the refund policy. It is important that customers be able to access and understand the policy before making a purchase.

It is also important that the businesses refund policy complies with Australian Consumer Law. For example, it is illegal to not offer a refund if the goods are faulty.