Industry codes of conduct
Codes of conduct provide a set of rules or standards for an industry. They aim to protect against unfair behaviours and set standards within an industry, so practices can be regulated.
Some codes of conduct are mandatory. These codes are law and industry must follow them. Others are voluntary, only applying to those who choose to sign up.
Tips to help you comply with industry codes
- Before you enter into an agreement, check if there are code requirements you must follow.
- Understand what good faith is and make sure you act that way in your dealings.
- If you have a dispute, check your code as it often has set rules to follow.
- Keep timely and accurate records for compliance checks.
Most common mandatory codes for small businesses
Your small business may be part of an industry with a prescribed mandatory code. You need to check if you meet the criteria. If so, you must follow the code and make sure you comply.
The ÌÇÐÄÔ´´ regulates codes of conduct that are prescribed by law under the Competition and Consumer Act 2010. These mandatory codes apply to all businesses operating in the relevant sector, including small business.
Franchising Code of Conduct
Many businesses belong to a franchise. Whether you are buying into a franchise, running or ending one, the Franchising Code of Conduct will help you address some of the problems caused by the power imbalance in the franchise relationship.
Horticulture Code of Conduct
If your business grows or sells horticulture produce you will need to follow the Horticulture Code of Conduct. You have rights and responsibilities under the code including having agreements in place for trade relationships and acting in good faith.
Sugar Code of Conduct
Many sugar cane growers and those in the supply chain must follow the Sugar Code of Conduct. Under the code you need to meet requirements for supply contracts and act in good faith.
Unit Pricing Code
If your business is an in-store or online grocery retailer, and you sell certain food-based grocery items, you must follow the Unit Pricing Code. This includes how you must display unit prices and use units of measurement.
Example
A franchisee signed a dog grooming franchise agreement with franchisor Jay’s Strays on 30 April 2025. The term of the agreement was 5 years and included an option to renew or extend the agreement for a further 5 years if the franchisee enters a new agreement.
The agreement also included a clause that prevented the franchisee from operating a dog grooming business anywhere within its exclusive area for 12 months after the agreement ended. However, the agreement did not allow the franchisee to claim or be paid genuine compensation for goodwill.
In 2030, the franchisee tried to renew or extend the agreement and met all the relevant criteria, but franchisor Jay’s Strays refused. The agreement ended on 29 April 2030.
Under the Franchising Code of Conduct, a franchisor cannot rely on or enforce a post-term restraint of trade clause unless it pays the franchisee genuine compensation for goodwill. Penalties apply.
Codes impacting how larger businesses treat you
Food and Grocery Code of Conduct
If your small business supplies products to a large grocery business, they must follow the Food and Grocery Code of Conduct in their dealings with you.
Wheat Port Code of Conduct
If your small business exports bulk wheat, the Wheat Port Code of Conduct helps make sure you have fair and transparent access to port terminal services.
Example
A supplier enters into a grocery supply agreement with a large grocery business. The agreement sets out sales targets for the supplier and specifies that the agreement can be terminated if the supplier does not meet these targets.
During the term of the agreement, the large grocery business decides that it no longer wants to work with the supplier. The large grocery business places the supplier’s product behind other competitors’ products on shelves so that consumers can’t see them. As a result, the supplier does not meet its sales targets, and the large grocery business terminates the agreement.
Under the Food and Grocery Code, large grocery businesses must deal with suppliers in good faith. This large grocery business is unlikely to have acted in good faith, as it acted with an ulterior motive and did not act reasonably.
Codes some small businesses are exempt from
Dairy Code of Conduct
Many dairy farmers who produce milk or manufacture dairy products are small businesses. If you have an aggregated turnover of less than $10 million you are exempt from the Dairy Code of Conduct but expected to act in good faith at all times.
How we make sure codes are regulated and complied with
If a code requires a business to keep, generate or publish information or documents, you must supply these to us when we request them.
Learn more about the process for compliance checks for codes.
Voluntarily joining an industry-led code
Some codes are led by industry.
An industry-led code of conduct sets standards for the way industry participants:
- deal with each other and their customers
- act to comply with competition and consumer law
Learn more about industry-led codes.