Re Media Council of Australia Authorisation: Re Australian Consumers' Association's Application [1987] ATPT 1

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JUBGMENT No. soavecsecsovecoeces seqgennaete®

TRADE PRACTICES TRIBUNAL

Re Media Council of Australia Authorisation: Re Australian Consumers'

Association's Application

Lockhart J. - President, Prof. M. Brunt, Dr. B.I. Aldrich

19-22, 25, 27-29 August, 2-5, 9-12, 16-17 September 1986; 31 March

Trade Practices ~ Advertising ~ Codes of Conduct - Self-regulation by the advertising industry and by media groups in relation to

advertising - Trade Practices Act 1974 (Cth), ss. 90(6), 90(8), 101.

ACA applied under s. 101 of the Trade Practices Act 1974 for review of

the authorisation by the Trade Practices Commission of the Advertising

Code of Ethics and certain Product Codes adopted by MCA and members of

its constituent and affiliated organisations.

Held: (1) The Tribunal must be satisfied that the proposed conduct would result or he likely to result ina benefit to the public and that such benefit would outweigh the detriment to the public

constituted by any lessening of competition;

(2) The main product market for consideration by the Tribunal was the supply of advertising messages directed to the Australian

consumer. The self-regulation of the advertising industry in Australia was a system of private regulation of the market for advertising messages, the Codes being collectively implemented and

enforced in the exercise of significant market power;

(3) A Code system might improve the quality of advertising methods and have procedural and enforcement efficiencies over other

means of regulation. A benefit would exist where the performance of

the Code system was likely to be better than the alternative market

based system. The Codes were classified in order to identify the

benefit and detriment resulting from the Code rules;

(4) A benefit existed where the MCA Codes reflected the

requirement of Federal and State legislation and related regulations;