Non-prescribed voluntary industry codes of conduct
A non-prescribed voluntary industry code of conduct sets out specific standards of conduct for an industry about the manner in which it deals with its members and customers. These standards are voluntarily agreed to by its signatories.
An industry that is not covered by a prescribed industry code of conduct under the Competition and Consumer Act 2010 (the Act) may wish to develop a non-prescribed voluntary industry code of conduct.
Effective non-prescribed voluntary industry codes of conduct
We encourage industry to develop codes that will deliver effective compliance with the Act. Effective codes potentially deliver increased consumer protection and reduced regulatory burdens for business. To achieve this they must be well designed, effectively implemented and properly enforced. In contrast, ineffective codes may place compliance burdens on business without any realisable benefits and potentially make signatories less competitive.
There are many factors that should be considered when developing a non-prescribed voluntary industry code of conduct to ensure that it will become and will remain an effective regulatory tool. As a starting point we recommend that you consider the:
appropriateness of a voluntary industry code of conduct as a regulatory tool for the industry
competition implications of organising the industry through a voluntary industry code of conduct
role of any industry associations in the development of a voluntary industry code
need for a code administration committee to oversee the administration of the code
purpose and objectives of the voluntary industry code, what it seeks to achieve and how the achievement of these objectives will be measured
rules that are necessary to achieve the purpose and objectives of the code
coverage of the code and to whom it is intended to apply
sanctions that will apply for non-compliance with the code and procedures to be followed
need to raise awareness within the industry and consumers about the code
collection of data and monitoring the effectiveness of the code
The role of the ACCC in relation to non-prescribed voluntary industry codes of conduct
Our role with voluntary industry codes of conduct has, in recent years, ranged from providing guidance to industry associations to participating as an observer on code administration committees. The role of the ACCC also includes granting authorisation for certain conduct on public benefit grounds.
We do not have a formal role in enforcing non-prescribed voluntary industry codes of conduct and are only able to provide guidance to assist industry. We cannot and do not provide legal advice.
Enquiries about non-prescribed voluntary industry codes of conduct
If you would like further information in relation to non-prescribed voluntary industry codes of conduct call the ACCC Infocentre on 1300 302 502.
