ACCC hits Allphones again with contempt charge

It was revealed earlier today that the ACCC has instituted a class action lawsuit against phone retailer Allphones Pty Ltd for unconscionable conduct, now it has attacked the retailer again alleging the company has been in contempt of court.

The new contempt proceedings have been implemented in the Federal Court due to the fact that Allphones breached orders which were made by Justice Foster in the Federal Court on 9 October 2008.

According to the ACCC, Allphones have disobeyed two undertakings given to it by the court, these include:

– Prohibit Allphones from withholding consent to the assignment of an Allphones franchise on the basis that the franchisee will not sign a deed releasing Allphones from liability (undertaking 8).

– Require Allphones to give the ACCC seven days written notice of its intention to withhold consent to the assignment of an Allphones franchise on the basis that the new franchisee must enter into a new franchise agreement (undertaking 9).

The ACCC alleges that Allphones breached undertaking 8 on one occasion and undertaking 9 on three occasions.

A directions hearing has been set down in the Federal Court in Sydney for 21 August 2009.

This charge is in addition to the one mentioned earlier today where the ACCC is filing a class action law suit against the company and three of its executives for numerous dodgy practices against its franchisees.

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