Franchise Antitrust & Trade Regulation

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
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The GPMemorandum, Issue 183

In This Issue: - Fourth Circuit Upholds Summary Judgment For Manufacturer In Exclusive Dealing Case: Despite being one of two manufacturers that control 99% of the market, E.I. DuPont de Nemours and Co. has...more

Lines Drawn In Tesla Direct Sales Battle

Elon Musk's battle to sell Teslas directly to consumers continues. In the last five months, the governors and legislatures of Pennsylvania and New Jersey and, now, even the White House, have taken stands on whether or not...more

Breach of the Australian Franchising Code to result in fines

As foreshadowed by the Coalition Government earlier this year (see our previous update), penalties for breach of the Franchising Code of Conduct (Franchising Code) are to be introduced....more

Doing Business in Canada: Marketing & Labeling Legislation

MARKETING & LABELING LEGISLATION - In Canada, the federal Competition Act prohibits certain marketing activities, which include: • Resale price maintenance • Predatory pricing • Price discrimination •...more

Privacy Alert: Judge Backs FTC Authority in Data Breach Case Against Franchisor

On April 7, a federal judge denied the motion of Wyndham Hotels & Resorts, LLC (“Wyndham”) to dismiss a complaint brought by the Federal Trade Commission (“FTC”) for unfair or deceptive acts or practices based on alleged...more

To Be a Franchise or Not to Be….

When starting a new business, many people toy with the idea of opening a franchised business. What is a franchise, exactly? Legally speaking, a franchise has three components: 1) license of trademarks and systems, 2)...more

Here we go again: Australian government releases draft amendments to the Franchising Code of Conduct

The Australian government has released an exposure draft of amendments to The Trade Practices (Industry Codes – Franchising) Regulations 1998 (the Franchising Code of Conduct) and relevant provisions in the Competition and...more

Franchising Update - Winds of Change Arrive

In previous Franchising Updates, we reported on the Wein Review of the Franchising Code of Conduct (Code) and the Abbott Government's response to the recommendations in the Wein Report. On 2 April 2014, the Government...more

The GPMemorandum, Issue 179 (Distribution Issue)

In this Issue: - Tying And Other Claims By Service Competitor Rejected: A federal court in Arizona has rejected various antitrust claims brought by a servicer of aircraft power units against a manufacturer of...more

Major Amendments To Franchising Code Foreshadowed: The Australian Government Has Today Released An Exposure Draft Of The...

Stakeholders are invited to comment on the draft bill and Regulations by 30 April 2014 with the changes expected to take effect from 1 January 2015. The highlights of the amended Regulations include: Increased...more

Ownership Of Competitive Franchise Systems: Risks And Rewards

Franchise systems have been, and continue to be, sought-after investment and acquisition targets. As a result of this, the demand for ownership of franchise systems often exceeds supply. In fact, there has been almost a...more

Reviewing Franchising and Business Opportunity Fundamentals

After creating a successful business model, expansion becomes the next natural step. But such growth usually requires the involvement of third parties, especially if resources are limited. There are several ways to expand...more

Financial Performance Representations

On Tuesday February 11th, the Charlotte Business Franchise Network met on the 15th floor conference room at Nexsen Pruet. The attendees, representing a broad cross section of franchisors, master franchisees, and franchise...more

Franchising Update - February 2014

To begin 2014, we remind franchisors of the Government's response to the changes to the Franchising Code recommended last year. On 6 January 2014, Small Business Minister Bruce Billson advised that the Coalition advocated...more

Global Connection - November 2013: Entering the U.S. Franchise Market: a Summary of Legal Considerations

Franchisors that have developed successful programs in their home countries will frequently consider expansion opportunities in other countries. In the past, the U.S. was not necessarily an attractive venue in light of the...more

Global Connection - November 2013

In today’s global marketplace, companies need to be informed about foreign laws and practices that impact, or may potentially impact, their businesses in the various regions they serve. This edition of Global Connection...more

States propose revising the "relationship" between franchisors and franchisees

In the '90s, we witnessed efforts by franchisee rights advocates to introduce federal franchise legislation to protect franchisee interests in their relationships with franchisors. In connection with the FTC reviewing and...more

Supreme Court of Ohio Clarifies Beer and Wine Franchise Law

Last month the Supreme Court of Ohio helped clarify an oft-litigated feature of the state’s beer and wine “franchise” law. Like most such enactments, Ohio’s franchise law (the “Ohio Alcoholic Beverages Franchise Act”)...more

FTC and the “Internet of Things”: Franchisor on the hook

Last fall the Federal Trade Commission brought cases against a software developer and rent-to-own stores that secretly monitored people in their homes. The developer provided the stores with software that had a “Detective...more

Focused On Franchise Law - October 2013

FRANCHISOR 101: PRINCIPALS NOT LIABLE UNLESS THEY PARTICIPATE IN FRAUD - In Sig, Inc. v. AT&T Digital Life, Inc., a federal district court in Miami held that the principal officers of a home and business security and...more

NINTH CIRCUIT DISMISSES ROBINSON-PATMAN AND SHERMAN ACT CLAIMS, STATING: “WE MUST RETURN THIS CAPITALIST RUMBLE TO THE FORUM WHERE...

Antitrust lawyers well know that price discrimination claims under the Robinson-Patman Act (RPA) can be very difficult to win. For example, going as far back as 1953, the Supreme Court has held that there is no buyer...more

Australia: Commonwealth Government Responds To The Review Of The Franchising Code Of Conduct

The Australian Government has released its response to the review of the Franchising Code of Conduct (Report) and has accepted in full or in principle the majority of recommendations made by the independent reviewer and...more

AT&T MOBILITY V. AU OPTRONICS EXTENDS THE CALIFORNIA CARTWRIGHT ACT’S EXPANSIVE GEOGRAPHICAL SCOPE

As all California antitrust lawyers know, California’s principal antitrust statute is the Cartwright Act. The Act “generally outlaws any combinations or agreements which restrain trade or competition or which fix or control...more

Amended Red Flags Rule now in effect – are you still a creditor?

The FTC’s amended definition of “creditor” within the Red Flags Rule is now in effect. The definition is narrower in scope, but under it, a franchisor may still qualify as a “creditor.” For instance, if you use a...more

Franchising Newsletter – April 2013

Overview - There have been several franchising developments since our last update in February. This edition discusses: - minimising the risks when marketing through social media - comments from...more

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