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Ombudsman backs bigger fines for auto giants breaching franchising code

March 15, 2021 The Morrison government has proposed changes to the franchising code to address the power imbalance between multinational car corporations and family-owned automotive businesses. The reforms would increase penalties for multi-national car companies that breach the Franchising Code of Conduct from $66,000 to $10 million. Such breaches would include changing contracts, poor compensation and breaking promises made under warranties. The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has welcomed the changes. In his first official media statement since starting the role last week, Billson said he supported the suite of reforms, which seek to “mitigate the power imbalance between multinational car manufacturers and Australian dealers”.

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