ACCC Announces Agreement to Restrict Advertising of Infant Formula

As announced in a recent ACCC Media Release, the Australian Competition and Consumer Commission (ACCC) has re-authorised an agreement between manufacturers and importers of infant formula that prohibits them from advertising and promoting formula for babies under 12 months of age directly to the public. This five-year agreement is designed to promote breastfeeding in Australia, which has significant public health benefits.

What is the MAIF Agreement?

The Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (the MAIF Agreement) has been authorised by the ACCC since 1992, and in assessing this most recent application for re-authorisation, the ACCC has taken into account a wide number of views from interested parties regarding ways the MAIF Agreement could be improved.

The MAIF Agreement is a voluntary self-regulatory code of conduct between the manufacturers and importers of infant formula in Australia. It is Australia’s response to the World Health Organization’s (WHO) International Code of Marketing of Breast-milk Substitutes 1981 (WHO Code). The MAIF Agreement applies to those Australian manufacturers and importers of infant formula who are signatories to the MAIF Agreement.

While most interested parties were of the view that the MAIF Agreement should continue to be authorised, views differed on the appropriate length of time for authorisation given anticipated changes to WHO recommendations on these issues. Views ranged from a two year authorisation period to a 10-year period.

Current MAIF Agreement signatories are:

• Abbott Australasia Pty Ltd;
• Aspen Nutritionals Australia Pty Ltd;
• Australian Dairy Park Pty Ltd;
• Bayer Australia Ltd;
• H J Heinz Company Australia Ltd;
• Nestlé Australia Ltd;
• Danone Nutricia Australia Pty Ltd;
• The a2 Milk Company Limited; and
• The Infant Food Co Pty Ltd.

The MAIF Agreement aims to contribute to the provision of safe and adequate nutrition for infants, by the protection and promotion of breastfeeding and by ensuring the proper use of breast milk substitutes, when they are necessary, on the basis of adequate information through appropriate marketing and distribution.

Comment from the ACCC

While the ACCCC said most were happy to see the agreement to continue, there was debate over how long the agreement should be next put in place for.

The ACCC Commissioner Sarah Court said:

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 (Cth). Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

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Agreement to restrict advertising of infant formula – ACCC Release MR 124/16

Agreement to restrict advertising of infant formula announced, ACCC – ausfoodnews.com.au

Infant Nutrition Council – MAIF Agreement