article-article-body
In what has been called the most significant test of franchise laws in an Australian court, Mercedes-Benz dealers are suing the parent company for $650 million over a new fixed-price sales model that dealers claim will decimate their profits.
A total of 38 franchisees of the luxury German car-maker are alleging it breached the franchising code and consumer law after it introduced a new agency model in January where the manufacturer retains ownership of the cars in the salesroom.
The franchisees became “agents” who sell the cars at a fixed price for a fixed commission — a vastly different and less lucrative model than the prior arrangement, where dealers bought cars from Mercedes and sold them to the customer for their own price.
Handpicked for you
“Shell-shocked”: Australian AI marketing firm Metigy has entered administation, losing 75 employees
Staff at Australian tech startup Metigy say they are "shell-shocked" by the news of its administration, a move which has impacted 75 employees and appeared to take industry onlookers by surprise.
Fake Hog’s Breath Cafe Instagram account confuses diners, draws new attention to small business protections online
A strange Instagram account posing as the Hog's Breath Cafe in Orange is now offline, but not after drawing social media's attention.
COMMENTS
Reader comments will be back online shortly. In the interim send us any tips or feedback via news@smartcompany.com.au.