Dr Michael Schaper, deputy chairman of Australian Competition & Consumer Commission (ACCC), has advised franchisees and small business owners to get to know their rights and obligations under the Trade Practices Act 1974.

Speaking to those considering opening a new franchise business he said, “The ACCC administers the national Franchising Code of Conduct, which provides important protection for new franchisees, and a mechanism to sort out disputes which might emerge.”

“If you are thinking about starting up a small business itÕs a wise move to talk to your local business advisor or call the ACCC directly for a copy of the small business start-up checklist and franchising information,” advised Schaper.

Keeping in mind todayÕs declining economy, Schaper warned small businesses to keep astute. “Small businesses need to be vigilant [so] that they donÕt fall victim to unconscionable dealings by larger suppliers and franchisors, which may be feeling the pressure of the current economic climate.

“Equally, small businesses feeling the pinch must not cut corners by being less than truthful in their advertising and dealings with customers,” continued Schaper. “All too often many small operators are still unaware that it is illegal to enforce fixed prices, or make unsubstantiated green claims. When this happens, both small firms and customers lose out.”

Between 2005-2008 the ACCC recovered almost $2.7 million on behalf of small businesses and consumers across the country. For further information log onto www.accc.gov.au and find the small business resource centre under ÔFor BusinessesÕ. Alternatively call the helpline on 1300 302 021.