A Harvey Norman franchisor in Queensland, HN Macgregor Franchisor Pty Ltd, has paid a $15,650 penalty after the Australian Competition and Consumer Commission issued an infringement notice alleging a breach of the Franchising Code of Conduct.
The ACCC says the notice related to HN Macgregor’s failure to include mandatory information on the Franchise Disclosure Register before entering into a franchise agreement in July 2024. The register, hosted by the Australian Government, is designed to increase transparency in franchising and help prospective franchisees make an informed decision by listing set‑up costs and ongoing payments.
“A franchisor’s failure to publish up-to-date information on the disclosure register undermines transparency for prospective franchisees, and the reliability and integrity of the register,” ACCC Deputy Chair Catriona Lowe said.
“Many of the laws governing the franchising sector relate to information disclosure and are necessary because of the power imbalance between franchisor and franchisee.”
“Entering a franchise agreement is a significant financial decision and the register contains important information to inform this decision. Franchisees should be able to rely on the fact that all relevant information has been disclosed on the register,” Ms Lowe said.
“The franchising sector should be on notice that failure to comply with the Franchising Code of Conduct may result in enforcement action by the ACCC.”
HN Macgregor is the franchisor for the Harvey Norman complex in Macgregor, Queensland. There are about 200 franchised Harvey Norman stores operating across Australia.
The ACCC, which regulates industry codes prescribed under the Competition and Consumer Act including the Franchising Code of Conduct, can issue infringement notices when it has reasonable grounds to believe a contravention has occurred. The commission notes that paying the penalty specified in an infringement notice does not by itself mean a person or business is taken to have contravened the code.
On 18 March 2025 the federal government announced $7.1 million over two years to bolster the ACCC’s enforcement of the Franchising Code of Conduct, funding the regulator to expand education, enforcement and engagement in the franchising sector. One of the ACCC’s stated compliance priorities is ensuring small businesses receive the protections of competition and consumer laws, including industry codes of conduct.
