Trade practices compliance program templates

Overview

Section 87B of the Act gives the ACCC the ability to accept formal administrative undertakings. If a term of a s. 87B undertaking is breached, the Federal Court may make enforcement and compensation orders.

The ACCC has developed a template undertaking that may be used by businesses wanting to resolve a matter. It has also developed four trade practice compliance program templates.

The template trade practice compliance programs differ in two respects—the number of elements present, and the obligations within each of the templates.

These template trade practice compliance programs serve two purposes: to provide an example of what the ACCC is likely to accept by way of administrative resolution and to provide an indication of what the ACCC considers advisable in compliance programs implemented by companies voluntarily. 

ACCC considerations

In forming a decision to accept a court enforceable undertaking which imposes compliance program obligations, the ACCC considers (without limitation):

• the nature, seriousness and extent of the breach
• the number and nature of employees likely to expose the company to trade practices risks
• the company’s size, resources and turnover.

Synopsis

Formalisation of the company’s compliance policy, supported by the board, demonstrates and communicates senior management commitment to compliance.

The appointment of a specialist compliance officer and compliance advisor, the risk assessment process and reports to the board, support the provision of adequate resources and strategic oversight of the compliance program.

Training is required in the development of any compliance program. Operational staff must be provided with the training, information and resources to understand the compliance dimension of their work.

Besides having a positive impact on customer service, the complaints handling system provides an early warning system for companies on their trade practices risks.

The supply of documents clause allows the ACCC to assess the adequacy of and provide input into the compliance program development.

Reviews and reporting help the compliance program to continue to meet its purpose. Reviews assist the company to ensure the compliance program continues to address operational risks and is also continually improved.