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

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 All notes for the slides are suggestions only. The slides and notes are to be used by lecturer/facilitator in a way that best suits their needs. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

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 www.accc.gov.au Get students to research areas that the ACCC are currently dealing with. OR Look for case studies at www.accc.gov.au to share with the students. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

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

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) The web addresses for additional information about these bodies are included in the text (pages 381-385). Set cases where students will have to consider which areas should be consulted before going ahead with their plans. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

National privacy principles Privacy rights of consumers are protected by the National Privacy Act 1988 10 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 Use Case in point 13.3 ‘Thou shalt comply with the National Privacy Principles’, which outlines key issues raised by the implementation of the National Privacy Principles. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

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: www.adma.com.au Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

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

Ethical and moral issues in consumer marketing What is the difference between illegal and unethical? Activity: Ask students to find examples of where companies have used unethical practices which could be considered legal. Use the Cases in point 13.5 and 13.6 as examples. 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 Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski