Codes of Practice set out specific standards of conduct for an industry in relation to its customers. They are guidelines for fair dealing between you and your customers. They let your customers know what you as a business agree to do when dealing with them. Codes of Practice can relate to a single business, or represent a whole industry.

Usually, Codes of Practice are established through consultation with specific industry representatives and the community. They can be mandatory or voluntary:

• Mandatory codes provide a minimum standard of protection to the consumers in particular industries. They are prescribed as regulations under fair trading laws and have the force of law.
• Voluntary codes are a form of industry self-regulation. They can be sponsored by a particular industry association or they may be in partnership with a government agency. (Membership of an industry association may be a condition of the code). Voluntary industry codes are usually flexible and can be altered quickly in response to changing industry/consumer needs.