ACCC accepts undertaking from Brumby's over carbon tax row

Brumby's Bakery has been slapped with an undertaking by the Australian Competition and Consumer Commission after telling its franchisees to blame price rises on the carbon tax – but the competition watchdog says it's not making an example out of the franchise.

The chain was the first to be slammed by the ACCC with regard to the carbon tax, after managing director Deane Priest sent a newsletter to franchisees telling them to start raising prices in June, and blame any on the carbon tax if customers asked.

Priest has since resigned.

The ACCC has now confirmed Brumby's has accepted an enforceable undertaking, which includes writing to franchisees and outlining legal obligations under proper representation of prices. Staff will also receive more training.

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