Refund Home Loans Pty Ltd (RHL) is a home loan franchised business which refunds to customers half of the brokerage commissions paid by the banks and has approximately 300 franchisees Australia wide.

Late last month, the ACCC brought proceedings against RHL and its millionaire founding managing director Wayne Rodney Ormond for making false and misleading representations regarding its alleged special relationship with the ACCC, in breach of the Trade Practices Act 1974 (Cth) (the Act).

The ACCC has claimed that Mr Ormond made false statements to both current and former franchisees over a number of years implying that the ACCC:

• counselled RHL and Mr Ormond about their conduct towards franchisees
• supported the action taken by RHL against its past and present franchisees with whom it was in dispute.

The ACCC is now seeking declarations that the alleged statements breached the Act, injunctive relief, publication orders, the institution of a compliance program by RHL, personal training in the Act for Mr Ormond and costs. The proceedings will continue in December and Middletons will keep you advised of their progress.

Further details are available online.