ACCC infringement notices for franchisors: how they work and how to respond

• The rules are in Division 2A of Part IVB of the Competition and Consumer Act, s51ACC to s51ACJ.
• A notice has no effect if it is issued more than 12 months after the alleged contravention, or if it covers more than one alleged contravention.
• Paying stops Commonwealth proceedings for that alleged contravention. Not paying leaves you open to court action, where the maximum is 600 penalty units ($218,400) or the higher tier.
• You can ask the ACCC in writing to withdraw a notice.
• Paid notices are public: the ACCC keeps a register of them, and it has announced each recent franchising notice by media release.

1. The ACCC forms reasonable grounds to believe a person has contravened a civil penalty provision of an industry code, for example after a compliance check (s51ACD(1)).
2. It issues one notice per alleged contravention, within 12 months of the day the contravention allegedly occurred (s51ACD(2) and (3)).
3. The notice sets out a unique number, the issue date, your name and address, the day and provision allegedly contravened, the maximum penalty a court could order, the penalty payable, how to pay and your rights (s51ACE).
4. The penalty is 60 penalty units for a body corporate and 12 for anyone else (s51ACF).
5. You have 28 days to pay, starting the day after the notice is issued (s51ACI(1)).
6. The ACCC can extend that period once, by up to 28 days, by written notice (s51ACI(2) and (3)).
7. If you pay on time and the notice isn't withdrawn, you aren't regarded as having contravened the provision merely because you paid, and no Commonwealth proceedings can be started or continued for it (s51ACG). If you don't pay, you're liable to court proceedings (s51ACH).

Illustrative dates for a notice issued on 5 October 2026.

• Day 1 of the compliance period: 6 October 2026, the day after the notice is issued.
• Last day to pay: 2 November 2026, the 28th day.
• With the one permitted extension of 28 days: 30 November 2026.
• A withdrawal notice from the ACCC is only effective if given within the compliance period, so make any request early (s51ACJ(6)).
• The 12-month limit works backwards: for an alleged contravention on 20 January 2026, a notice issued after 20 January 2027 has no effect.

• Pay within the compliance period, using the method in the notice. The penalty is payable to the ACCC on behalf of the Commonwealth.
• Ask for more time. The ACCC may extend the period once, by up to 28 days, if it is satisfied that is appropriate.
• Seek withdrawal by making written representations to the ACCC (s51ACJ(1)). Evidence or information you or your representative give it isn't admissible against you in proceedings, except proceedings for an offence of giving false or misleading information.
• The ACCC can withdraw a notice whether or not you ask, and must refund anything already paid if it does (s51ACJ(3), (4) and (7)).
• Decline to pay and defend any court case. A court isn't limited to the amount in the notice (s51ACC(2)(c)).
• Whichever you choose, fix the underlying problem. After Luxottica paid its notice in March 2026, the ACCC said it was compliant and had reviewed its internal processes.

• It isn't an admission. The Act says you're not regarded as having contravened the provision merely because you paid, and the ACCC's media releases say the same.
• It closes off Commonwealth proceedings for that alleged contravention (s51ACG(3)); the bar covers proceedings by or on behalf of the Commonwealth.
• It is public. The ACCC lists paid notices on its infringement notices register, and its media releases have named the franchisor and the amount in each Register case since June 2025.
• It doesn't fix the breach. If you missed a fund statement or a Register update, you still have to complete it.
• It becomes part of your history. Buyers and their lawyers can find ACCC media releases, and repeated problems can lead to stronger action, such as court proceedings.

1. Record the issue date and work out the last day of the compliance period.
2. Tell your board and your franchise lawyer the same day.
3. Identify the provision and the day of the alleged contravention set out in the notice.
4. Pull the relevant records, which s37 of the Code requires you to keep for at least 6 years.
5. Check the notice on its face: issued within 12 months and covering a single alleged contravention (s51ACD(3)).
6. Decide whether to pay, seek withdrawal or defend, weighing the notice amount against the maximum a court could order, which the notice must state.
7. If you're seeking withdrawal, send written representations with evidence early, because the withdrawal must happen within the compliance period.
8. If you need more time, ask for the extension before the period ends.
9. If you decide to pay, do it by the stated method before the deadline and keep proof of payment.
10. Fix the underlying breach, update your compliance calendar, and prepare for the ACCC to publish the outcome.

Paying an infringement notice is not an admission that the law was broken. Each case is described as the ACCC described it.

• October 2022: Jim's Group paid $24,420 across two notices over an alleged understatement of former franchisees in its disclosure document and alleged misrepresentation of cooling-off rights.
• December 2023: Delicia Franchising paid an $11,100 notice over its 30 June 2022 marketing fund statement and gave a court-enforceable undertaking; the ACCC said it admitted its 2020 to 2022 statements lacked detail and weren't given within 30 days.
• June 2025: Cash Converters and Mobile Travel Agents paid $16,500 each over alleged failures to annually update or confirm their Register information.
• August 2025: HN Macgregor Franchisor, a Harvey Norman franchisor, paid $15,650 over allegedly missing Register information before a July 2024 agreement.
• March 2026: Luxottica Franchising Australia paid $19,800 after acknowledging it missed its May 2025 Register update.
• August 2026: Venue Smart paid $59,400 across three notices under the 2024 Code, over its marketing fund statement, its fund bank account and its Register information.

• A compliance calendar covers every Code deadline: information statements, the 14-day consideration period, fund statements, disclosure updates, s34 notices and Register dates.
• Each deadline has a named owner and a backup.
• Deadlines are set from your own financial year end, not assumed to follow 30 June.
• Records are kept for 6 years and can be produced within 21 days of an ACCC notice.
• Fund money sits in a separate account, and statements are prepared within 4 months of year end.
• The Register profile is confirmed every year, even without changes.
• A quarterly internal review checks that the calendar was met.