Prescribed industry codes of conduct

A primary role of the ACCC under s. 51AE of the Competition and Consumer Act 2010 (the Act) is to administer industry codes of conduct prescribed (i.e. made law) by the Australian Government.

There are two types of prescribed industry codes of conduct under the Act. These are:

• Prescribed mandatory industry codes of conduct
• Prescribed voluntary industry codes of conduct

It is the Australian Government, not the ACCC, that decides what codes will be prescribed under the Act. For further information about the Australian Government’s policy on prescribing industry codes of conduct, see the Treasury website.

Prescribed mandatory industry codes of conduct

A prescribed mandatory industry code of conduct is binding on all industry participants.

We are responsible for promoting compliance with prescribed industry codes of conduct by providing education and information and, where necessary, taking enforcement action.

There are currently four prescribed mandatory industry codes of conduct under the Act. These are:

• Franchising Code
• Oilcode
• Horticulture Code
• Unit Pricing Code

Prescribed voluntary industry codes of conduct

Voluntary industry codes of conduct may be prescribed under the Act. A prescribed voluntary industry code of conduct is binding only on those members of an industry or profession who are signatories to the code. A breach of a prescribed voluntary industry code of conduct is also a breach of the Act.

Prescribed voluntary industry codes of conduct should be distinguished from non-prescribed voluntary codes of conduct. The former is a part of the Act as prescribed by the Australian Government while the latter arises from an industry initiative, is not a part of the Act and is administered by the industry itself.

There are currently no voluntary codes of conduct prescribed under the Act.

Non-compliance with a prescribed industry code of conduct

A breach of a prescribed industry code of conduct is also a breach of s. 51AD of the Act. The ACCC may take action where a breach of the Act has occurred; however, industry participants can also take their own private action for a breach of a prescribed industry code.

A range of remedies are available to the affected party where a court finds that a breach of the Act has occurred. Ultimately it is the court's decision as to the appropriate remedies.

Where there is a breach of a prescribed industry code, remedies that may be available include:

• declarations that particular conduct is in breach of the Act
• injunctions to stop the prohibited conduct continuing, or to require some action to be taken
• damages
• recission, setting aside or variation of contracts
• community service orders
• corrective advertising.

If you have an inquiry about, or information in relation to, a breach of a prescribed industry code of conduct, please contact the ACCC Infocentre on 1300 302 502.

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