What if you don't comply with the Unit Pricing Code
If you fail to comply with the Unit Pricing Code, you are in breach of s. 51AD of the Competition and Consumer Act 2010 (the Act).
Legal action by the ACCC
The ACCC can institute legal proceedings against you if you breach the Unit Pricing Code and/or the Act.
Legal action by other affected parties
In addition to action by the ACCC, the Act also makes provision for other affected parties to take legal action for a breach of the Unit Pricing Code and/or the Act.
Remedies and penalties
The ACCC, or any other affected parties, can institute legal proceedings against you if you breach the code. The Act provides for a number of sanctions and orders including:
injunctions to stop the conduct
compensation and damages
setting aside or varying relevant contracts
orders for corrective advertising
for conduct that also breaches the civil and criminal provsions of the Act, fines of up to $1.1 million for companies and $220 000 for individuals.
The Act also provides for the ACCC to accept court enforceable undertakings in appropriate circumstances.
Commercial consequences of a breach
If you are found to be in breach of the Act and the Unit Pricing Code, you may also face a number of commercial consequences. For example, poor publicity may have a detrimental effect on your reputation or that of your organisation.
What should I do if I believe I am in breach of the Unit Pricing Code?
If you believe you are at risk of breaching the Unit Pricing Code, you should:
immediately stop the activity
seek advice on whether you are in breach of the Act
attempt to resolve any disputes
provide a remedy to the affected parties
review how the breach came about
put in place controls in the form of an effective compliance program to avoid future recurrences.
