Bakery franchise busted blaming price rises on carbon tax

Bakery franchise Brumby’s has been caught red-handed attempting to blame price rises on the carbon tax, after a letter sent by the company to franchisees was leaked.

The Australian Competition and Consumer Commission has already warned it will be investigating the company over the letter.

According to the correspondence, which is attributed to managing director Deane Priest, Brumby’s has told all of its franchisees they should start increasing prices as early as June and July, and to:

“let the Carbon Tax take the blame”.

“After all, your costs will be going up due to it.”

The ACCC said in a statement it will be “making inquiries of Brumby’s]”, after spending months warning businesses it would impose fines on any business increasing prices and blaming it on the tax. 

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