Source: Pexels/George Sultan.
Car repair business Ultra Tune has again found itself facing legal action from Australia’s competition and consumer watchdog in relation to its dealings with franchisees.
The Australian Competition and Consumer Commission (ACCC) revealed on Tuesday that it has initiated contempt of court proceedings against Ultra Tune over alleged breaches of court orders imposed against the company three years ago.
In January 2019, the Federal Court ruled that Ultra Tune breached both the Franchising Code of Conduct for failing to act in good faith with franchisees, and Australian Consumer Law (ACL) by making false or misleading representations.
The case was the first time the watchdog had taken a franchisor to court over the good faith obligations under the Franchising Code.
In addition to imposing a $2.6
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