New legal action launched against Gold Coast based Jump! Swim Schools and founder Ian Campbell

Australia’s competition watchdog has joined a volley of court action against companies linked to a Gold Coast-based chain of swim schools. The company’s director is also in the sights of authorities.

Jump! Swim Schools have been swamped with legal actions. Founder Ian Campbell is in the sights of the ACCC. Picture: supplied.

AUSTRALIA’S competition watchdog has joined a volley of court action against companies linked to Gold Coast-based Jump! Swim Schools.

The Australian Competition and Consumer Commission has instituted proceedings against franchisor Jump Loops and its parent company Swim Loops Holdings in the Federal Court, alleging that it made false, misleading or deceptive statements about swim school franchises, in breach of the Australian Consumer Law.

Jump! branded swim schools have more than 60 locations across Australia including nine in Queensland and were founded by Surfers Paradise entrepreneur Ian Campbell.

The ACCC is also taking action against Mr Campbell, alleging he was involved in the conduct.

The Bulletin has contacted Mr Campbell for a response.

Ian Campbell, founder of JUMP! Swim Schools. Picture: supplied.

The commission alleges Jump Swim made representations in its promotional material that a prospective franchisee would have an operational swim school within 12 months of signing a franchise agreement, when it did not have reasonable grounds for making that statement.

The Australian Taxation Office and WorkCover Queensland have joined a wind-up action which also involves up to 10 disgruntled franchisees.

Lawyers for the franchisees say many paid over $100,000 each for a franchise and had waited over a year without the franchise being delivered.

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“There are over 90 Jump Swim franchisees who did not receive an operational swim school within 12 months or at all,” the ACCC said in a statement today.

“The initial costs of setting up a Jump Swim School generally ranged from approximately $150,000 to $175,000.”

ACCC chairman Mick Keogh said franchisors needed to take their legal obligations seriously. “Purchasing a franchise is a big decision, and people looking to open a franchise business rely on the information from the franchisor being accurate,” he said.

“We allege this conduct caused substantial harm to franchisees who paid significant sums but did not receive an operational swim school within the time specified, or at all.”

Managing director Ian Campbell with students of his Jump Swim Schools. Pic: by Richard Gosling

Additionally, the ACCC alleges that the franchisor Jump Loops Pty Ltd wrongfully accepted payment from franchisees where it failed to supply an operational franchise within the 12 month period specified, or alternatively, within a reasonable time. The ACCC alleges that Swim Loops Holdings Pty Ltd and Mr Campbell were involved in the conduct.

“Jump Swim continued to accept payments when it knew, or ought to have know

n at the time it accepted the payments, that the timing for its delivery of operational franchises was dependent on events that were outside its control,” Mr Keogh said.

Each Jump Swim School required development and building approvals from council, and in many instances, it was taking longer than 12 months to provide franchisees with operational swim schools.

The ACCC is seeking injunctions, declarations, pecuniary penalties, redress for franchisees, disqualification orders, an order as to findings of fact, and costs.

The watchdog last week obtained a Federal Court order freezing the assets of Jump Swim and Mr Campbell and requiring them to disclose details of their financial position.