Industry codes of practice are enforceable rules and measures that regulate industry conduct, its workers and their relationship with consumers. Ultimately, they ensure good industry practice by setting guidelines for fair dealing between you and your customers.
You can choose to establish your own Code of Practice, or adopt an industry specific Code of Practice. Check out our previous guide What Is An Industry Code of Practice? for more information about whether a Code of Practice is mandatory or voluntary in relation to your business or industry.
Examples of Industry Codes of Practice
Here are 3 examples of industry codes of practice in Australia.
1. Code of Banking Practice
The Australian Bankers’ Association (ABA) Code of Banking Practice governs banks and their dealings with individual or small business customers, including prospective customers and their guarantors. The Code sets standards for good banking practice that promotes good faith and transparency between the banks and customers. Essentially, it ensures consumer protection, and regulates financial services.
The Code covers four key areas:
- The bank’s key commitments and general obligations.
- Banking services practices.
- Information about banking services.
- Resolution of disputes, monitoring and sanctions.
The Code gives individual and small business customers rights such as:
- Disclosure of fees and charges and other terms and conditions;
- Changes to terms and conditions and fees and charges;
- Privacy and confidentiality;
- Debt collection; etc.
When a bank adopts the Code, it will become binding between you and the bank. Although the Code is not legislation, banks that adopt it are contractually bound by their obligations. For example, if a bank breached the Code, the Code Compliance Monitoring Committee (CCMC) will investigate the alleged breach, or the customer can refer to the bank’s external dispute resolution scheme.
For a greater overview about what rights the Code gives you or if you have further questions, check out the ABA’s Code of Banking Practice – FAQ.
2. The Telecommunications Consumer Protections Code
The Telecommunications Consumer Protections (TCP) Code is one of many industry codes of practice that determines standards for telecommunications service providers in Australia. It protects mobile, landline and internet customers. Basically, the Code sets out rules telecommunications providers must adhere to in their dealings with customers. The ACMA and the industry compliance body, Communications Compliance, monitors compliance.
The Code covers five areas:
- Advertising and point of sale;
- Payment methods;
- Complaint handling; and
- Customer’s change of service provider.
The Code provides the following safeguards:
- Before you buy a product or service;
- Before you receive your bill;
- When you receive your bill;
- If you cannot afford to pay your bill; and
- If you have a complaint.
The Telecommunications Industry Ombudsman (TIO) deals with consumer complaints concerning breaches of the Code.
For more information check out Industry Codes the TIO Considers.
3. Franchising Code of Conduct
The Franchising Code of Conduct is a mandatory industry code that applies to franchisors, franchisees and prospective franchisees of a franchise agreement. It imposes obligations to all franchise agreements that were entered into, renewed, extended or transferred on or after 1 October 1998. If a franchise agreement was entered, renewed, transferred or varied on or after 1 January 2015, then it will be covered by the entire Code.
The Code is regulated by the Australian Competition and Consumer Commission (ACCC) who encourages compliance with the Code. It investigates alleged breaches of the Franchising Code, and takes action when appropriate.
What issues are covered by the Code?
- Disclosure of information regarding the Franchisor.
- Conditions contained in the Franchise Agreement.
- Complaint handling and dispute resolution procedures.
From 1 January 2015, a new Franchising Code of Conduct was implemented. This means parties to a franchise agreement must comply with new requirements, and procedures should be in place to ensure your compliance with the Code. For example, franchisors must act in good faith, put marketing fund money in a separate account, etc.
LawPath has experienced franchise lawyers who can help you and advise you on your rights and obligations.
Each industry has its own legal and business requirements. If you would like to find out what code applies to your business, check out the Australian Government’s Industry Research. For greater legal guidance get in touch with a business lawyer to find out what industry code of practice applies to your industry and your obligations.
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