I am a franchisee and have become aware of a serious injury caused by the use of a product I supply. Do I have to submit a mandatory report to the ACCC or can I rely on my franchisor to do so (if I tell them)?

Example: A customer contacts a pizza store because they believe that the pizza which they purchased from the store caused them severe stomach cramping and vomiting, requiring medical treatment. The franchisee received the ingredients for the pizza from the franchisor but the pizza was prepared, cooked and supplied to the consumer on the franchisee’s premises.

Answer: In this instance the pizza is the consumer good (not the individual ingredients supplied by the franchisor) so the franchisee would be responsible for notifying the ACCC of the incident. If the food was pre-prepared by the franchisor (e.g. cakes) and required no preparation or cooking by the franchisee, both parties would have an obligation to report.

However, you can establish an ‘agency’ relationship to allow your franchisor to report on your behalf. Refer to the ACCC mandatory reporting guideline for more information.