The Full Federal Court of Australia has dismissed an appeal by Ultra Tune Australia Pty Ltd, affirming a previous Federal Court ruling that imposed a $1.5 million fine for multiple instances of contempt of court. This decision stems from Ultra Tune's failure to comply with court orders issued in 2019 following earlier proceedings by the Australian Competition and Consumer Commission (ACCC) regarding violations of the Australian Consumer Law and the Franchising Code of Conduct.

Ultra Tune's appeal was based on two main arguments: first, that the court lacked the authority to impose penalties for contempt without explicit endorsement of consequences in the original orders, and second, that the calculation of the fines was flawed. However, the Full Federal Court found no errors in the primary judge's interpretation of the relevant rules and upheld the fine, stating that Ultra Tune did not demonstrate any significant error in the penalty determination.

ACCC Commissioner Liza Carver expressed satisfaction with the court's decision, emphasizing the critical nature of compliance with the Franchising Code to protect franchisees. The ACCC plans to continue monitoring Ultra Tune and other franchisors to ensure adherence to legal requirements.

Ultra Tune, a car servicing franchisor with over 260 centers across Australia, has faced legal challenges since 2017 when the ACCC initiated proceedings against it for alleged breaches of consumer laws. Previous penalties imposed on Ultra Tune included a total of $2.604 million, which was later reduced to $2.014 million on appeal. The company was ordered to implement a compliance program in 2019, but subsequent failures led to the contempt proceedings initiated by the ACCC in 2022.