HOME LOAN FOUNDER VIOLATES TRADE PRACTICE ACT

Written on the 7 April 2010

HOME LOAN FOUNDER VIOLATES TRADE PRACTICE ACT

THE Federal Court has ruled that Refund Home Loans founder Wayne Ormond (pictured) made misleading statements to franchisees about approvals from the Australian Competition and Consumer Commission (ACCC).

Ormond admits he violated the Trade Practice Act 1974 by telling franchisees false statements about meetings with the ACCC.

Misleading and false comments found to made by Ormond to franchisees included: “Now I’ve spoken to the ACCC. I’ve done everything in accordance with the law," and: “Mate, I’ve had meetings with Graeme Samuel (ACCC chairman) himself. I have nothing to worry about.”

The result follows proceedings that began in October 2009, which will now restrain Ormond from making representations for franchisees in the future, with the implementation of a trade practice law compliance program he will need to train for.

ACCC chairman Graeme Samuel says franchisees and franchisors have a special relationship where trust should not be abused.

“Using the name of the ACCC or individual ACCC officers as a means of discouraging franchisees from exploring their own legal rights is reprehensible,” says Samuel.

“Franchisors and franchisees have a special business relationship. Franchisees trust their franchisor to provide honest and reliable information as to their own business and about franchising generally and to mislead them in this way is an abuse of trust.”


Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter