1. 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

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
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

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
Get students to research areas that the ACCC are currently dealing with. OR
Look for case studies at 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

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

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)
The web addresses for additional information about these bodies are included in the text (pages ).
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

6. 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

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

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

9. 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

10. 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