The Full Federal Court has dismissed an appeal by Ultra Tune Australia Pty Ltd, upholding a March 2024 Federal Court decision to impose $1.5 million in fines for four instances of contempt of court, ACCC has announced today (28 January).
The contempt stemmed from breaches of orders made in 2019 after earlier ACCC proceedings against Ultra Tune for violations of the Australian Consumer Law (ACL) and the Franchising Code of Conduct. These included a failure to implement a compliance program mandated by the court.
Ultra Tune challenged the decision on two grounds: first, that the court lacked the authority to impose contempt penalties due to a lack of endorsement on the relevant orders; and second, that the fines were miscalculated.
The Full Federal Court rejected both claims, ruling that the orders were correctly interpreted and that the fines were neither excessive nor erroneously calculated.
ACCC Commissioner Liza Carver welcomed the decision, emphasizing the importance of compliance with the Franchising Code. “This outcome sends a clear message that non-compliance, especially following prior judgments, will not be tolerated,” Ms. Carver said.
The ACCC plans to continue monitoring Ultra Tune’s compliance and take further action if needed. The Court also awarded the ACCC costs for the appeal.
Background
Ultra Tune, a car servicing franchisor with over 260 locations across Australia, has a history of non-compliance.
In 2019, the Federal Court fined Ultra Tune $2.604 million (later reduced to $2.014 million) for contraventions, including late submission of mandatory marketing fund statements and misleading a prospective franchisee.
Following those penalties, the court ordered Ultra Tune to implement a compliance program and adhere to the ACL and Franchising Code. Ultra Tune’s failure to meet these obligations led to the contempt proceedings in June 2022 and subsequent $1.5 million fine in March 2024.
