Voluntary industry codes of conduct

If you have a complaint about a business that subscribes to a voluntary industry code of conduct, you may be able to resolve it using the complaints handling procedures in the code.

What is a voluntary industry code of conduct?

A voluntary industry code of conduct sets out specific standards of conduct for how an industry will deal with its customers. Businesses voluntarily agree to uphold these standards by signing up to the code. Usually there are sanctions for businesses who breach the code, which may include:

• having to pay a fine
• being expelled from the industry association or
• having to advertise that they have breached the code and explain what they are going to do to resolve a complaint.

For instance, most of the major supermarkets in Australia have signed up to the Scanning Code of Practice, a voluntary code designed to protect you from errors in checkout systems. Signatories are required to ensure their checkout systems are price accurate. If a product incorrectly scans at a higher price, you may be entitled to receive that item free. Where multiple identical items are purchased, you may be entitled to receive the first item free of charge and the remaining items at the lower price.

How can a voluntary industry code of conduct help you?

Most voluntary industry codes of conduct will allow you to make a complaint when you are dissatisfied with a product or service. There will usually be a procedure in the code for complaints to first be considered by the business and then the industry association. If after this you still are not satisfied, then you should be able to have your complaint reviewed by an independent body from outside the industry. 

In some industries, there may be significant consequences for businesses that breach a voluntary industry code of conduct. For example they may be required to supply you with a free item or give you a refund.

How do you find out whether a business is bound by a voluntary industry code of conduct?

If you are not sure whether the business you are dealing with is bound by a voluntary industry code of conduct, you can:

• ask them
• check whether they advertise that they are a member of an industry association by looking in the yellow pages, at their premises, on their website, in their brochures, etc.
• contact the relevant industry associations to see if they have a code and whether the business has signed it (to find industry associations, search the name of the industry in the internet or look in the telephone book or the Directory of Australian Associations).

What is the role of the ACCC in relation to voluntary industry codes of conduct?

The ACCC does not regulate voluntary industry codes of conduct and cannot enforce a breach of a voluntary code.
The ACCC can authorise provisions in voluntary industry codes of conduct that may be anti-competitive if it is satisfied that the public benefit outweighs any public detriment. The ACCC is also able to assist industry associations in developing effective voluntary codes of conduct