Notice of ACCC undertaking from GJ Gardner Homes

Sarah Stowe

Netdeen Pty Ltd  (Netdeen), the franchisor of the G.J. Gardner Homes franchise network, and its directors Mr Gregory Gardner, Mr Darren Wallis, and Ms Joanne Harris, have recently been the subject of an investigation by the Australian Competition and Consumer Commission (ACCC).

The investigation followed complaints that Netdeen made representations to prospective franchisees between 2004 and 2006 regarding the significance of buying power and some specific capabilities of its building management software system (the Computer System) (the representations), where these representations have not been substantiated.

Netdeen and its directors have acknowledged that the representations made by them may have been likely to mislead or deceive potential franchisees in contravention of the s.52 of the Trade Practices Act 1974 (Cth).

Netdeen and its directors have fully cooperated with the ACCC and have taken steps to resolve the ACCCÍs concern by offering a court-enforceable undertaking which requires them to take corrective steps which include: consumer redress to two of its former franchisees; the inspection and amendment of all its corporate materials containing the subject representations; publishing this notice on www.gjgardnerhomes.com.au, www.franchise.net.au and in the Franchising magazine at the cost of Netdeen; the establishment of a Trade Practices Compliance Program.

A full copy of this undertaking can be viewed at www.accc.gov.au.