ARTICLE
24 April 2008

Suppliers May Be Liable For Claims Made By Distributors In Their Advertising

On 6 December, Justice Gordon held that Telstra had breached the Trade Practices Act as a result of advertisements published by its dealers.
Australia Antitrust/Competition Law

On 6 December, Justice Gordon held that Telstra had breached the Trade Practices Act as a result of advertisements published by its dealers. The ads in question promoted the Next G Network, and had not been seen by Telstra prior to publication. Telstra's responsibility for its dealers' actions relied on the nature of its dealer agreements, particularly the inclusion of obligations to promote the product in accordance with company procedures. This decision has immense implications for every franchisor and many other suppliers

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