This document sets out policy guidelines for the consideration of proposals to prescribe voluntary or mandatory industry codes under Part IVB of the CCA.
Part IVB of the CCA provides for the prescription of mandatory or voluntary industry codes. An 'industry code' is defined as a code regulating the conduct of participants in an industry towards other participants in the industry or towards consumers in the industry. Section 51AD of the CCA states that a person must not contravene, in trade or commerce, an applicable industry code. An 'applicable industry code' is defined as, in relation to a corporation that is a participant in an industry, the prescribed provisions of any mandatory industry code relating to the industry and the prescribed provisions of any voluntary industry code that binds the corporation.
Section 51AE of the CCA allows industry codes to be prescribed in regulations proposed by the responsible Australian Government Minister. Mandatory codes are binding on all industry participants. Voluntary codes are binding on only those members of an industry or profession that have agreed to be bound by the code.
Prescribed codes must address specific problems and drafted in clear and unambiguous terms that set out requirements and obligations rather than aims and ideals.
The Australian Competition and Consumer Commission (ACCC) keeps a public register of companies bound by voluntary codes. Prescribed industry codes are enforceable by the ACCC or by private action under the CCA, with a wide range of remedies available, including injunctions and damages.
As of April 2011, four mandatory industry codes and no voluntary industry codes have been prescribed, these are:
- franchising (Franchising Code of Conduct — introduced in 1998);
- horticulture producers and wholesalers (Horticulture Code of Conduct — introduced in 2006);
- wholesale oil supply (Oil Code — introduced in 2006); and
- unit pricing for supermarket products (Retail Grocery Industry Unit Pricing Code — introduced in 2009).
Further information and guidance on the current prescribed industry codes can be found at the ACCC's website, www.accc.gov.au.