Australian Eyewear Giant Fined $20k Over Major Franchise Disclosure Failure
An Australian eyewear franchisor behind major brands OPSM and Laubman & Pank has been hit with a substantial penalty after the consumer watchdog found it failed to keep franchise buyers properly informed about its business operations.
The Australian Competition and Consumer Commission (ACCC) issued an infringement notice to Luxottica Franchising Australia, resulting in a $19,800 penalty payment. The company manages operations for more than 400 franchisees and franchisor-owned or operated eyewear retailers across the nation.
Failure to Update Franchise Disclosure Register
The regulatory breach occurred when Luxottica Franchising Australia failed to update its profile in the Franchise Disclosure Register by the May 2025 deadline. This register provides crucial information to prospective franchise buyers, existing franchisees, and professional advisers about franchise systems.
ACCC Deputy Chair Mick Keogh emphasised the importance of this transparency, stating that businesses and individuals need clear, reliable information about franchises to make informed decisions about entering franchise agreements.
"We are pleased Luxottica is now compliant and has reviewed its internal processes to avoid future oversight," Mr Keogh said.
Compromised Transparency and Compliance Obligations
The ACCC warned that failure to update the register compromises transparency and could potentially mislead prospective franchisees. All franchisors have obligations under the Franchising Code of Conduct to update their profiles annually with accurate information.
"The ACCC will continue to examine the register for potential failures by franchisors to meet their obligations under the Code and take enforcement action where appropriate," Mr Keogh added.
Company Background and Previous Compliance Issues
Luxottica Franchising Australia operates 21 franchisees and 387 franchisor-owned or operated eyewear retailers nationally, including the well-known OPSM and Laubman & Pank store networks. The company is a subsidiary of EssilorLuxottica, a global optical retail business with approximately 18,000 stores worldwide.
This isn't the first time Luxottica has faced scrutiny from the ACCC. In 2018, an investigation found that the company's marketing fund financial statement and disclosure document were unlikely to comply with the Franchising Code of Conduct.
The recent penalty serves as a reminder to all franchisors about their legal obligations regarding transparency and disclosure to potential franchise partners.
