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Home > How to franchise a business > Franchise Regulations Australia > Competition and Consumer Act
The Competition and Consumer Act came into effect on January 1, 2011 and is one of the most comprehensive bodies of law in Australia. It aims to enhance the welfare of Australians by promoting competition and fair trading and providing consumer protection, and includes the relationships among suppliers, wholesalers, retailers, competitors and customers.
It applies to most corporations, sole traders and partnerships whose activities cross state boundaries (or take place within a territory), or are conducted by phone or post, or use radio or television.
In real terms, the Competition and Consumer Act covers almost all businesses operating in Australia. Where it is not applicable, relevant state Fair Trading legislation may apply instead.
Of these, misrepresentation and unconscionable conduct (in addition to breaches of the Franchising Code of Conduct) are the most common contraventions by franchisors of the Competition and Consumer Act, formerly known as the Trade Practices Act.
Additional information on the Australian Competition and Consumer Commission’s (ACCC) role in administering the Competition and Consumer Act, the Franchising Code of Conduct or the Oil Code is available on the ACCC website.
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