By Chalpat Sonti
The Australian Competition and Consumer Commission has reached an out-of-court settlement with mobile phone retailer Allphones over allegations the company engaged in unconscionable conduct towards its franchisees.
Neither party would confirm the details of the settlement, or if one had taken place, but WAtoday.com.au understands it is for about $3 million, plus costs of about $1m.
The ACCC instituted proceedings against Allphones, chief executive Matthew Donnellan, chief operating officer Tony Barker, and former national franchising manager Ian Harkin in the Federal Court last year on behalf of 74 franchisees nationwide, including several from WA.
It claimed Allphones failed to pass on bonuses and commissions from telecommunications companies, also withheld rebates from handset and other product suppliers, and made deductions from commission payments which were meant for franchisees.
The case has been heard in the Federal Court in Sydney since March 23. However, the parties are understood to have reached a settlement earlier this week.
It is understood the amount settled for is about one-quarter of the franchisees' total claims against Allphones.