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ACCC set to decline infant formula marketing ban request

Source: Bigstock

The Infant Nutrition Council has failed to secure the ACCC’s approval to continue implementing an industry code that restricts the promotion of formula for babies up to 12 months of age.

The council is pushing for the continuous enforcement of the ‘Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement’ (MAIF agreement), to protect breastfeeding rates in Australia.

However, implementing the code requires the ACCC’s approval as it involves an agreement among manufacturers and importers not to market their infant formula.

The ACCC noted that while it approved the agreement’s validity for three years in 2021, extending it beyond the period would no longer result in public benefits that outweigh public detriment.

“While the MAIF Agreement aims to protect and promote breastfeeding rates in Australia, we are concerned that there are several factors that undermine its effectiveness,” said Mick Keogh, ACCC deputy chair.

“This includes its voluntary nature, its limited scope, and restrictions on its ability to capture the breadth of modern digital marketing methods, such as the use of social media algorithms and content created by third-party influencers.”

The ACCC’s response came after a Department of Health and Aged Care-commissioned independent review showed that the agreement no longer fits its purpose.

The review suggested that the code be replaced with a stronger regulatory framework in the form of a legislated, prescribed, mandatory code.

Introduced in 1992, the agreement forms part of Australia’s obligations as a signatory to the World Health Organisation’s International Code of Marketing Breast Milk Substitutes.

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