An Australian eyewear giant has been fined by the competition watchdog for failing to keep its franchise system information up to date.
Luxottica Franchising Australia manages operations for more than 400 hundred franchisees and franchisor-owned or operated eyewear retailers, including OPSM and Laubman & Pank stores nationally.
The company paid a $19,800 penalty after it was issued with an infringement notice by the Australian Competition and Consumer Commission (ACCC) for failing to update its profile in the Franchise Disclosure Register by May last year.
The register provides franchise buyers, franchisees and professional advisers with information about its franchise systems.
ACCC Deputy Chair Mick Keogh said it was important that interested businesses and individuals could access clear and reliable information about a franchise to make informed business decisions, including whether they should enter into a franchise agreement with a franchisor.
“We are pleased Luxottica is now compliant and has reviewed its internal processes to avoid future oversight,” he said.
“Failure to update the register compromises transparency and may mislead prospective franchisees, so all franchisors should be aware of their obligations to comply with the Code and update their profiles annually with accurate information.
“The ACCC will continue to examine the register for potential failures by franchisors to meet their obligations under the Code and take enforcement action where appropriate.”
Luxottica Franchising Australia is a subsidiary of EssilorLuxottica, a global optical retail business with about 18,000 stores worldwide.
In 2018, an ACCC investigation found Luxottica’s marketing fund financial statement and disclosure document were unlikely to comply with the Franchising Code of Conduct.
EssilorLuxottica has been contacted for comment.
