Non-prescribed voluntary industry codes 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
• review and audit processes.

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.