The Australian Automotive Dealer Association (AADA) has welcomed the Australian Competition and Consumer Commission’s (ACCC) proposal to develop a class exemption that would allow all franchisees to collectively bargain with their franchisor regardless of their size or other characteristics.

This would allow franchised new car Dealers to collectively bargain with their franchisor without having to seek prior authorisation from the ACCC.

“This is a most welcome proposal which could result in our members being in a position to work with their franchisors in a more cooperative and integrated fashion,” said AADA CEO David Blackhall.

“I congratulate the ACCC for this decision which takes account of the significant power imbalance between franchisor and franchisee, particularly in the new car retail industry,” he said.

“The AADA stands ready to work through the details of this initiative so that the voice of franchised new car Dealers is well and truly heard,” he said.

The proposal will be underpinned by a legislative instrument which will be developed in draft form and put out for public consultation in the first quarter of next year.