A proposed code of Practices and Code Administration Authority launched today by the Australian Direct Marketing Association was a positive step for the industry, the Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.

Professor Fels told the launch, held at the Sydney Global Commerce Conference, that a successful code was a 'living thing'.

‘ADMA's Code of Practice is the culmination of three years of cooperative effort,’ he said. ‘This effort included the direct involvement of a number of regulatory agencies and two major consumer organisations and consultations with scores of interested community and industry parties.

‘This Code builds on recommendations from the Ministerial Council of Consumer Affairs' Direct Marketing Model Code of Practices. The Code sets outs standards on:

consumers' access to information they need to make informed choices;
ethical sales practices and compliance with fair trading principles;
consumers' access to appropriate returns policies, complaints procedures and remedies where there are sales problems; and
protecting consumers from unreasonable intrusive telemarketing practices.
‘A successful effective Code is a living thing. Reviews and consultation should be carried out regularly to allow the Code to change and grow to adapt to the changing needs of its creators and others stakeholders.

‘This is already happening with ADMA's Code of Practice in the authorisation process. ADMA has applied for the ACCC to authorise some elements of its Code, in the ACCC's formal statutory process under the Trade Practices Act 1974. This is not yet complete.

‘The ACCC has issued a draft determination on ADMA's Code of Practice, raising some concerns it had with the Code that need to be satisfied before the Commission could grant authorisation. ADMA and the Commission are working together on these matters and matters raised by other interested parties. A conference will be held shortly to discuss these matters.

‘Once these matters and any other relevant matters have been settled, I expect the authorisation of the Code to proceed.

‘I congratulate ADMA on having taken up the challenge by the Ministerial Council on Consumer Affairs to adopt the Direct Marketing Model Code of Practice. I encourage ADMA and all parties interested in direct marketing practices to continue to work together with this living, breathing Code to make it an example of Australian industry and consumer interests cooperating to produce a direct marketing regime of world's best practice.