Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski LEGAL AND ETHICAL ISSUES

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-2 Legal and ethical issues At the end of this session, you should understand: The main emphasis of the Trade Practices Act and its relevance to marketing The roles of the main regulatory bodies that influence marketing and consumer activities The role of the National Privacy Principles in protecting consumers The focus of the ADMA code of conduct and its consumer protection codes The guidelines for ethical behaviour of the Market Research Society of Australia The role of the Australian Consumer’s Association as an advocate for consumer rights

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-3 The Trade Practices Act and the ACCC Australian Competition and Consumer Commission (ACCC): – Formed in 1995 out of a merger of the Trade Practices Commission and the Prices Surveillance Authority by the Federal Government in an attempt to implement a national competition policy – Goals are to protects consumer rights and create a ‘level playing field’ in the Australian marketplace – Administers the Trade Practices Act 1974 and the Prices Surveillance Act 1983 Find out about recent action taken out by the ACCC by visiting

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-4 Industry regulation Industry groups are regulated by legislation but many are also self-regulated Self-regulation: – Industry develops its own guidelines or code of conduct by which industry members must abide – Specific marketing industry associations with self- regulation include:  The Australian Association of National Advertisers (AANA)  The Advertising Federation of Australia  The Market Research Society of Australian  Australian Direct Market Association

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-5 Key regulatory bodies in Australia Advertising Standards Board – Hears complaints about advertising from general public and other companies The Australian Association of National Advertisers (AANA) – Includes codes for advertising to children Therapeutic Goods Administration The Alcohol Beverages Advertising Code Weight Management Code of Conduct The Advertising Federation of Australia (AFA) Commercial Television Australia (CTVA)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-6 National privacy principles Privacy rights of consumers are protected by the National Privacy Act National Privacy Principles cover: – How personal information is collected – The purposes for collecting that information – How accurate and up-to-date that information is – How Privacy Policy can be documented and made available – The rights you have to retrieve your own information – How this information is classified – Your rights to remain partly identified – How information flows from country to country – How sensitive information cannot be collected without consent

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-7 Direct marketing and the ADMA code of conduct Australian Direct Marketing Association (ADMA) – Represents the interests of the direct marketing industry Major legislation affecting this industry is the National Privacy Principles See the ADMA Code of Conduct at their website:

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-8 Market Research Society of Australia (MRSA) code of conduct

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 13-9 Ethical and moral issues in consumer marketing What is the difference between illegal and unethical?

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski The Australian Consumers Association (ACA) A not-for-profit organisation that lobbies and campaigns on behalf of consumers Publishes CHOICE magazine Has been actively involved in: – Current trade practices legislation – The role of state consumer affairs and fair trading departments – Industry conduct codes – Mandatory safety standards for many products