Retail Food Group Limited (RFG) has agreed not to blame the carbon price for any increase in prices at its Brumby's bakeries or other businesses.
The group, which has more than 1,200 franchised outlets across the country, including Donut King, Michel's Patisserie, Brumby's Bakery, bb's cafe, Esquires Coffee Houses and Pizza Capers, said inquiries by the consumer watchdog, the ACCC, had now been resolved.
The ACCC was looking into a newsletter which suggested Brumby's franchisees raised prices and "let the carbon tax take the blame".
In a statement on Monday, RFG said it had agreed to refrain from making any communications that may "encourage or induce Brumby's Bakery franchisees from making representations to consumers, without a reasonable basis, that retail prices have increased due to the carbon price and cause its subsidiaries to comply".
Assistant Treasurer David Bradbury previously said Brumby's could be fined up to $1.1 million for any breaches of the law.
Brumby's managing director Deane Priest resigned from his position earlier this month over the carbon price controversy.
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