If you are a franchisor or operate a small business, advertise goods or services, negotiate with suppliers, are a distributor or compete with other businesses, then you should have a Trade Practices Act 1974 (Cth) (TPA) compliance program (Program) in place.

A recent Australian Competition & Consumer Commission (ACCC) news release again highlighted the importance for franchisors to have such a Program in place. In this instance, G.J. Gardner Homes, Netdeen Pty Ltd and its directors have given Court enforceable undertakings after an ACCC investigation into allegations that the franchisor had mislead former franchisees.

The ACCC's Program Checklist

The ACCC has produced a checklist for small businesses as to how they should establish, and what should comprise a Program. In summary, these steps are:

Demonstrated Commitment
Businesses should make a board resolution evidencing their intention to implement a Program, to establish a TPA compliance culture and to appoint a TPA compliance officer. The list is not exhaustive and can include what follows or anything relevant to a business' particular characteristics.

Prioritise TPA Risk Areas
The next step is to investigate and understand the business' risk areas. These may include:

• Price fixing and retail price maintenance.
• Imposing conditions on the supply of goods or services to, or by a third party.
• Unconscionable conduct.
• Misleading and/or deceptive conduct.
• Compliance with TPA industry codes such as the Franchising Code of Conduct.

Further details are available online.