Industry Codes Of Conduct: How To Comply In Australia

When you’re running a small business, you’ve already got plenty on your plate - sales, customers, suppliers, staff, cash flow, and everything in between.

But depending on your industry, there may be an extra layer of rules you need to consider: your industry’s code of conduct.

Industry codes of conduct can shape how you deal with customers, competitors, suppliers, franchisees, or even other businesses in the same sector. Some codes are voluntary “best practice” standards. Others are mandatory and can have real legal consequences if you ignore them.

Below, we’ll break down what an industry code of conduct is, how to work out whether one applies to your business, and practical steps you can take to comply (without overcomplicating things).

What Is An Industry Code Of Conduct?

An industry code of conduct is a set of rules or standards that guide business behaviour in a particular industry or sector.

In plain English, it’s a framework that tries to make sure businesses act fairly and consistently - especially where there’s a power imbalance (for example, between a large supplier and a smaller reseller, or between a franchisor and franchisee).

Why Do Industry Codes Of Conduct Exist?

Industry codes of conduct exist because not every issue can be covered neatly by general laws. Codes are often created to address recurring problems in a specific sector, such as:

• unfair contract practices
• lack of transparency around fees, commissions, or rebates
• pressure tactics or “take it or leave it” arrangements
• dispute resolution that is slow, expensive, or unclear
• confusion about what information must be disclosed and when

Codes can also improve trust in an industry. If customers and business partners know there are rules to follow, it can make it easier to build long-term relationships.

Are Industry Codes Of Conduct The Same As General Business Laws?

Not quite.

General laws like the Australian Consumer Law apply to most businesses in Australia, regardless of industry. An industry code of conduct, on the other hand, is usually targeted at a specific market and may impose extra obligations (or more detailed obligations) on top of the general law.

That said, codes often overlap with broad legal duties - especially around misleading or unfair behaviour, contract fairness, and dispute handling.

Mandatory Vs Voluntary Industry Codes Of Conduct (And Why It Matters)

When we talk about an industry code of conduct, the first thing to clarify is whether the code is mandatory or voluntary.

Mandatory (Prescribed) Industry Codes

A mandatory code is usually “prescribed” in legislation. If you operate in that sector and fall within the code’s scope, you must comply.

Some common examples of prescribed Australian industry codes include:

• Franchising Code of Conduct (for many franchising and franchise-like arrangements)
• Food and Grocery Code of Conduct (for certain dealings between larger grocery businesses/wholesalers and suppliers that opt in)
• Horticulture Code of Conduct (for many growers and traders in the horticulture produce supply chain)
• Oilcode (for fuel re-selling and certain fuel retail arrangements)
• Unit Pricing Code (for certain retailers that must display unit pricing)

In practice, a mandatory code may:

• require you to provide specific disclosures or documents
• set rules for dispute resolution and complaint management
• restrict certain contract terms or behaviours
• require record-keeping and reporting
• impose penalties for non-compliance (depending on the regime)

If you’re subject to a mandatory industry code of conduct, it’s worth treating it like any other compliance obligation - the same way you’d treat your tax obligations or workplace compliance.

Voluntary Industry Codes

A voluntary code is usually created by an industry body or group of businesses as a “best practice” standard. You may be able to choose whether to sign up, and participation might help you show customers you take compliance and ethical behaviour seriously.

However, “voluntary” doesn’t automatically mean “risk-free.” If you publicly commit to a voluntary code (for example, by advertising membership or compliance), you still need to make sure your business is actually operating in line with it. Otherwise, you may create risk under consumer law if your marketing or claims are misleading.

Where Small Businesses Can Get Caught Out

Many small businesses run into issues because they assume:

• codes only apply to “big players”
• codes only apply if you’re a member of an industry association
• codes are optional guidelines rather than enforceable obligations

In reality, the scope of an industry code of conduct depends on how it’s drafted. Some codes apply based on what you do (your activities), not your size.

How Do You Know If An Industry Code Of Conduct Applies To Your Business?

This is the key question: how do you figure out whether an industry code of conduct applies to you?

Start with a simple mindset: don’t assume, confirm.

Step 1: Identify Your “Real” Business Activities

Your business name or brand doesn’t always reflect your actual legal/compliance risk profile.

For example, you might think you’re “just a distributor,” but your actual activities could include:

• entering standard form supply agreements
• acting as an agent or intermediary
• operating a marketplace or subscription model
• providing finance or credit arrangements to customers

Your risk exposure tends to be driven by what you do, not what you call yourself.

Step 2: Check Whether There’s A Prescribed Code In Your Sector

Some industries have well-known codes of conduct. Others have codes that only apply in particular situations (like certain distribution models, licensing arrangements, or contracting structures).

If you’re unsure, it’s often worth getting legal advice early - especially if you’re about to sign a major contract, roll out standard terms, or expand to new channels.

Step 3: Review Your Contracts, Not Just Your Processes

Often, whether an industry code of conduct applies depends on the contractual structure. For example, the way you:

• appoint resellers, agents, or contractors
• charge fees or commissions
• control branding and marketing
• set performance requirements

This is where well-drafted agreements really help. A tailored Service Agreement (or equivalent commercial contract) can be a big part of your compliance strategy because it helps you clearly define rights, obligations, and boundaries.

Step 4: Be Careful If You’re Franchising (Or Could Be “Accidentally” Franchising)

Some business models can trigger extra obligations because they look and behave like a franchise arrangement, even if you don’t call them a franchise.

If you’re rolling out a repeatable business model under a brand, taking fees, and exercising control over how another party operates, it’s worth checking whether you’re at risk of “accidental franchising” and whether a code could apply.

Practical Steps To Comply With An Industry Code Of Conduct

Compliance doesn’t have to mean drowning in paperwork. For most small businesses, it comes down to building a clear, repeatable system and making sure your legal documents match what you actually do day-to-day.

Here are practical steps that usually make the biggest difference.

1. Turn The Code Into A Simple Internal Checklist

Codes are often written in dense language. Your team doesn’t need to memorise the code - but they do need a process they can follow.

Create a short checklist tailored to your business, such as:

• What do we need to disclose before a customer signs?
• What contract terms must be included (or avoided)?
• What are the timeframes for responding to complaints?
• What records do we need to keep, and for how long?
• Who is responsible internally for approvals and sign-off?

This is particularly helpful if you have staff, contractors, or multiple locations.

2. Make Sure Your Contracts And Terms Match Your Compliance Obligations

Even when a code is “industry specific,” the day-to-day issues tend to show up inside your contracts.

Depending on your business, that could include:

• customer terms and refund processes
• supplier pricing and rebate arrangements
• termination rights and notice periods
• how disputes are handled
• how variations to an agreement are made

If you use standard terms, it’s also worth checking whether your documents raise risks under unfair contract term rules. You may need a UCT review and redraft to reduce risk if your contracts are customer-facing or offered on a take-it-or-leave-it basis.

3. Train The People Who Actually Deal With Customers And Partners

Compliance isn’t just a legal issue - it’s an operational issue.

Your highest-risk moments are usually when someone on your team:

• makes a promise to win a deal
• responds to a complaint or refund request
• changes pricing or a service scope mid-contract
• handles a dispute informally (via email, SMS, or phone)

Short, practical training (and templates for common scenarios) can prevent these moments turning into formal disputes.

4. Keep Proper Records (Especially For Sales, Disclosures, And Complaints)

Many industry codes of conduct include record-keeping expectations, and even where they don’t, good records make it easier to defend your business if an issue escalates.

At a minimum, consider keeping records of:

• quotes, proposals, and variations
• contracts and signed terms
• disclosures and key pre-contract information
• complaints and how they were resolved
• communications about performance issues or termination

If your business involves significant customer communications (especially online), also consider whether you’re collecting personal information and whether your Privacy Policy reflects what you actually do with that data.

5. Review Your Marketing And Sales Claims For Consistency

Sometimes, the quickest way to breach obligations is through marketing that overpromises.

Even if an industry code of conduct is voluntary, if you claim you comply with it (or claim your services meet a particular standard), you need to ensure that’s true in practice.

This ties closely to consumer law risks - especially if your advertising could be seen as misleading or deceptive. If you sell to consumers, your team should be across core customer guarantee issues, including how warranties and remedies work. It’s also worth having a clear internal policy for refunds and returns that aligns with the Australian Consumer Law.

Common Legal Documents That Support Industry Code Compliance

Industry codes of conduct often demand consistency, transparency, and fairness. The easiest way to build that into your business is to make sure your legal documents reflect what the code expects (and what you actually do).

Depending on your industry, here are some documents that commonly support compliance.

• Customer terms and conditions: Your customer-facing terms help define scope, pricing, delivery, limitations, and dispute processes (and help prevent misunderstandings before they start).
• Service Agreement: If you provide services to other businesses, a tailored Service Agreement can set expectations on deliverables, payment, variations, and termination.
• Privacy Policy: If you collect personal information (for example, through an online store, booking system, or mailing list), you’ll likely need a Privacy Policy that explains how you collect, store, and use it.
• Employment Contract and workplace policies: If you have staff, clear terms help reduce disputes and keep your processes consistent. A tailored Employment Contract is often a good starting point, supported by practical workplace policies.
• Company Constitution and governance documents: If you operate through a company (especially with multiple directors or shareholders), clear governance rules help with decision-making and accountability. A Company Constitution can be particularly useful where compliance requires formal sign-offs or approvals.
• Contract variation and record-keeping processes: Many compliance issues come from informal “side agreements.” Having a consistent approach to contract changes can prevent confusion (and make disputes easier to resolve).

Key Takeaways

• An industry code of conduct is a set of standards or rules that can govern how your business operates within a specific industry.
• Some industry codes of conduct are mandatory (and enforceable), while others are voluntary - but even voluntary commitments can create legal risk if you advertise compliance and don’t follow through.
• To work out whether a code applies to your business, focus on your actual business activities and contracts, not just your brand or industry label.
• Practical compliance usually comes down to systems: clear checklists, staff training, good record-keeping, and consistent complaint handling.
• Your legal documents are a major part of compliance - well-drafted contracts, policies, and governance documents help you align your operations with code requirements and reduce disputes.

Important: This article is general information only and isn’t legal advice. Because the rules and code coverage can vary depending on your industry, contracts, and business model, it’s a good idea to get advice tailored to your situation.

If you’d like help understanding whether an industry code of conduct applies to your business, or you want your contracts and policies reviewed for compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.