20Price discrimination in sales of motor fuel to franchisees

#### 20 Price discrimination in sales of motor fuel to franchisees (1) A corporation that is a franchisor in relation to 2 or more franchise agreements shall not, in relation to motor fuel supplied or to be supplied under those agreements (whether by it or by any other person), cause or permit any discrimination between the persons who are franchisees in relation to those agreements in respect of: (a) the amounts payable by the franchisees in respect of the fuel; or (b) any discounts, allowances, rebates or credits given or allowed to the franchisees in respect of the fuel. (2) Subsection (1) does not apply in relation to a discrimination if: (a) the discrimination makes only reasonable allowance for differences in the cost or likely cost of raw materials, refining, distribution, sale or delivery resulting from the differing places to which, methods by which or quantities in which the motor fuel is supplied to the franchisees; (b) the discrimination is constituted by the doing of an act in good faith: (i) to meet a price or benefit offered by a competitor of the franchisor; or (ii) to assist a franchisee to meet a price or benefit offered by a competitor of the franchisee; or (c) the discrimination results only from compliance with a law of a State or Territory fixing the wholesale price, or the maximum wholesale price, of motor fuel. (3) This section does not apply in relation to the supply or proposed supply of motor fuel to a franchisee for a purpose other than retail sale at the marketing premises to which the franchise agreement relates. (4) Subsection 22(1) does not apply in relation to loss or damage suffered by a franchisee by reason of a discrimination referred to in subsection (1) if the franchisor believed on reasonable grounds that the motor fuel concerned was acquired by the franchisee for a purpose other than retail sale at the marketing premises to which the franchise agreement relates. (5) In any proceedings: (a) the onus of establishing that, by reason of subsection (2), subsection (1) does not apply in relation to a discrimination is on the person asserting that fact; and (b) the onus of establishing that, by reason of subsection (4), subsection 22(1) does not apply in relation to loss or damage suffered by a franchisee is on the person asserting that fact. (6) In this section, franchise agreement means a franchise agreement in relation to which this Act applies, and franchisee and franchisor shall be construed accordingly.