Mandatory Codes of Practice
Understand how codes of practice impact your business
Mandatory codes of practice exist to provide a baseline level of protection for consumers within specific industries. They are legally enforceable under the Consumer Affairs and Fair Trading Act 1990.
These codes help ensure that fair business between you and your customers are consistent and transparent. If a code is mandatory, you are legally required to comply with it.
Be aware that if an industry code relevant to your business requires you to retain specific information or documents, the Australian Competition and Consumer Commission (ACCC) can request these records.
The Australian Government has committed to introduce new mandatory industry codes to outline the responsibilities of the private sector in relation to scam activity, with a focus on banks, digital communications platforms and telecommunications providers.
Voluntary codes
Made in collaboration with Industry associations and government agencies.
These codes are self-regulated and can be updated quickly to meet changing needs of the industry or customers.
Adherence to these codes is voluntary, but can benefit your business by:
- Increasing your business reputation: Stakeholders are more likely to continue their business relationships with you if you are committed to ethical practices, which will help build trust.
- Minimising risk management: Address potential risks related to safety, security, and environmental impact to prevent harm and ensure ongoing protection.
- Creating an impact: Raise awareness and education on environmental challenges and cultural sensitivity among employees and stakeholders.
To check if there are any voluntary codes of practice in your industry you can do the following:
Further resources for sectors
The Australian Competition & Consumer Commission provides further additional resources tailored to the unique challenges of different sectors, helping small businesses navigate ethical practices and promote competition:
Environmental code
NT businesses should keep up to date with relevant environmental laws applicable to ensure compliance and reduce environmental impacts.
Codes for small businesses
There are certain codes that apply to small businesses to protect them, their customers and employees. Explore some of the common codes that small businesses need to comply with every day.
Be aware of your duty of care as a business owner to ensure good workplace health and safety.
This responsibility includes ensuring your infrastructure and materials are maintained in a safe condition or take the appropriate measure to remedy to this. You also need to ensure workers have enough information and training to complete their work safely.
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You have a responsibility to advertise and promote your products and services truthfully and transparently.
The advertising and marketing code of conduct ensures that businesses do so, avoiding misleading or deceptive claims, protecting consumer interests and uphold ethical standards.
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Be aware of your responsibility to protect customer information.
Data protection codes ensure customer information is kept confidential, accurate and secure.
Compliance involves following guidelines for data collection, storage, and usage, while respecting privacy rights and legal obligations.
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Be aware of your responsibility to follow fair trading practices and protect consumers right.
This means you comply with guidelines and regulations around advertising, warranties, refunds, and product safety.
Small businesses are required to comply with these regulations to avoid penalties and maintain trust with consumers.
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Australia has minimum employment conditions such as wages, working hours, leave entitlements, and workplace safety which businesses must adhere to.
Be up to date with information regarding these labour codes to ensure you comply with the National Employment Standards (NES).
The Fair Work Ombudsman offers guidance and resources to help small businesses navigate their responsibilities, including hiring, dismissals, and dispute resolution.
Additionally, small business owners must comply with industry-specific awards that set out pay rates and conditions tailored to different sectors.
Adhering to these employment codes not only protects employees but also helps businesses avoid legal disputes and foster a fair working environment.
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