Compliance Toolkit

Do Not Call Register essentials

The Do Not Call Register is expected to commence on 31 May 2007. It will be administered by ACMA.

The package of laws, regulations and standards consists of:

• the Do Not Call Register Act 2006 (Cth);  
• the Do Not Call Register Regulations 2006 (Cth);   
• the Do Not Call (Consequential Amendments) Act 2006 (Cth);
• Telecommunications (Do Not Call Register) (Telemarketing and Research Calls) Industry Standard 2007.

Trade Practices Act

The Treasurer has announced that the amendments to the Trade Practices Act made by Trade Practices Legislation Amendment Act (No. 1) 2006 will commence from 1 January 2007.The Act implements the Government’s response to the Review of the Competition Provisions of the Trade Practices Act (Dawson Review).

Corporate trade practices compliance program

The ACCC has issued a corporate trade practices compliance guideline to assist medium to large companies to better educate themselves about the essential elements of obeying the law.

Trade Practices Compliance Program

As previously announced, the ACCC has now released four draft Trade Practices compliance program templates which can be identified in a court order rather than a generic order.

The 4 draft templates are alternatives which can be modified depending on the company's needs. Variable  factors include, but are not limited to, the number of employees, agents and directors exposed to the possibility of breaching the Trade Practices Act 1974.

Depending on the size and risk profile of the company, a Trade Practices Compliance Program can be as simple as implementing an effective complaints handling system and training relevant staff; or as comprehensive as setting up a team of dedicated compliance staff and conducting regular risk assessment checks.

The templates can be used in conjunction with the ACCC Best & Fairest Compliance Manual.

New ACCC compliance programs

In this speech (at page 13) ACCC Commissioner David Smith announced the ACCC has developed trade practices compliance templates:

With compliance programmes in recent times the Federal Court has indicated its reluctance to make orders for trade practices compliance programs in terms of the existing standard for compliance programs. In response to those concerns the ACCC has developed four trade practices compliance templates which assist greater clarity and measurability.

Level 1 and Level 2 templates have been designed to assist micro and small businesses looking for some guidance in putting in place effective compliance systems. Level 3 and Level 4 templates have been formulated for the needs and circumstances of medium and large businesses. The templates and the accompanying Compliance Review Guidelines will be placed on the ACCC website in the near future.

The ACCC notes that there is no generic trade practices compliance program as each organisation’s circumstances are different. Depending on the size and risk profile of the company, a Trade Practices Compliance Program can be as simple as implementing an effective complaints handling system and training relevant staff; or as comprehensive as setting up a team of dedicated compliance staff and conducting regular risk assessment checks.

Companies using the templates should not see them as a solution to all their problems. The requirements of the templates should still be tailored to the company’s specific needs and circumstances, ideally by compliance professionals after conducting a thorough trade practices risk assessment.

The ACCC has also developed a Compliance Review Requirements publication to accompany the templates and provide clear instructions on what we are looking for in compliance program reports.

Small business and unconscionable conduct

A new small business guide to unconscionable conduct law has been issued by the Australian Competition and Consumer Commission.

The guide contains simple English explanations of unconscionable conduct law, and how it might apply to common business situations. It also contains examples of the difference between hard bargaining and unconscionable conduct.

Two Price Advertising

The ACCC has issued a useful flowchart to help businesses decide whether their ads (eg "was $x, now $Y" or "25% off") are misleading to consumers. The guide does not apply to comparative advertising of your product with a competitor's.