The ACCC has issued a draft determination proposing to allow the Recruitment, Consulting and Staffing Association Limited (RCSA) to give effect to its new Professional Conduct Regime. As a transitional measure, the authorisation would also allow RCSA to continue to give effect to its current Code for Professional Conduct and disciplinary procedures until the new Regime is implemented.
The ACCC considers that there are public benefits from both the current and the amended Regimes, as they result in higher professional standards in the industry (specifically amongst RCSA members) and make it easier for job seekers and others who use recruitment services to make informed decisions about which service provider to engage with.
The ACCC considers that the arrangements are unlikely to result in public detriments, for example, by making it harder for recruitment services providers to compete with each other. The ACCC has not received any evidence that RCSA has refused membership in an anti-competitive manner.
The ACCC notes that RCSA has imposed sanctions on few occasions and not at all under its most recent authorisation. We consider RCSA’s use of sanctions as a threat in dealings with members has encouraged engagement by members with RCSA’s more educative and cooperative intervention methods, and has produced a net public benefit. In addition, we note that RCSA has used the protection provided by authorisation to refuse membership to applicants that it does not consider suitable for membership. However, the ACCC is concerned about whether the threat of sanctions is credible and effective as a deterrent to poor behaviour in the first instance given RCSA does not have a strong record of imposing sanctions for non-compliance.
The ACCC proposes that authorisation for the new Regime would expire in five years, and notes that in considering any application for reauthorisation at that time, we would look for evidence that RCSA is undertaking effective enforcement and compliance activities leading to appropriate deterrence. Evidence that RCSA has not imposed sanctions, where they would have been appropriate for delivering specific and general deterrence, would raise concerns as to whether the benefits arise to the extent claimed.
The ACCC has previously granted authorisation to RCSA in three successive five-year authorisations, for its Professional Conduct Regime. As RCSA’s most recent authorisation ended on 6 March 2019, the ACCC granted interim authorisation on 28 February 2019 to allow RCSA to continue to administer its existing Professional Conduct Regime while the ACCC is considering the application for re-authorisation.
The ACCC invites submissions in relation to this draft determination before making its final decision. Further information about the ACCC’s draft determination and the RCSA’s application for re-authorisation is available on the ACCC’s authorisation public register.