11 Business: Government Issues and Product Life Cycle

why the Australian Government is involved in business activity

• the Australian Government is involved in regulating various aspects of business operations and consumer protection to ensure the health, safety, and well-being of its citizens

• this involvement is essential to balance the interests of businesses with the need to protect the public from harmful practices

• Public Health and Safety: the government aims to minimise the health risks to it citizens as many products pose risks to health if consumed irresponsibly or excessively

• Protection of Vulnerable Groups: Children are particularly susceptible to advertising and may not fully understand the implications of their choices. Government intervention helps protect these groups from predatory marketing.

• Consumer Rights: Accurate information and clear labelling empower consumers to make informed choices. By enforcing labelling laws and restricting deceptive practices, the government protects consumer rights.

• Economic Balance and Fairness: Regulating trading hours and product marketing promotes fair competition and a healthy work-life balance for employees in various sectors.

• Preventing Exploitation: Through laws against misleading advertising, the government prevents companies from exploiting consumers' lack of knowledge or vulnerability.

what businesses can do under Australian law

• Operate and market products within the legal framework set by the government.

• Label products accurately to inform consumers.

• Advertise and promote products to the general public, within certain guidelines.

• Choose business hours within the restrictions defined by the government or local councils.

what businesses can’t do under Australian law

• Engage in deceptive or misleading marketing practices

• Advertise certain products to vulnerable groups, especially children

• Ignore mandatory product labelling and health warnings, particularly for products like alcohol and tobacco

• Operate outside regulated trading hours in certain states or regions

• Promote products in a way that encourages excessive or harmful consumption, such as alcohol or junk food to children

product labelling

•   The Australian Government enforces strict product labelling laws

• through the Australian Competition and Consumer Commission (ACCC) and Food Standards Australia New Zealand (FSANZ)

• Businesses must provide accurate, clear, and accessible information on product packaging, including listing:

  • ingredients

  • allergens

  • nutritional information

  • country of origin for food products

• Labels on alcohol and tobacco products must include health warnings, and many other products must display correct safety information to ensure consumer awareness

trading hours

•   enforced to support worker rights and promote community welfare

• the government regulates trading hours to support a work-life balance, reduce crime associated with late-night trading, and ensure fair competition

• the Retail Trading Hours Act 1987 applies to retail shops in Western Australia south of the 26th parallel

• it sets out the trading hours and rules covering various categories of retail outlets

• the trading hours of the following store types are not covered by the Act and therefore do not have specified trading hours:

  • restaurants,

  • cafes,

  • takeaway food shops,

  • short-term markets (set up and dismantled in one day), and

  • shops on Rottnest Island.

advertising practices to children

• advertising to children is regulated to protect them from harmful, misleading, or exploitative content

• Privacy Act - requires businesses to obtain parental consent before collecting personal data from children under 13

• strict guidelines limit advertising of unhealthy foods, alcohol, gambling, and certain other products during children’s programs and digital spaces

• advertisements must not exploit children's vulnerability, mislead them, or undermine parental authority, and there are restrictions on the use of popular characters and targeted digital ads

• these regulations aim to support children’s well-being, promote healthy habits, and ensure a safe media environment

marketing and promotion of alcohol

• alcohol advertising is regulated to prevent promotion to minors

• the Australian Alcohol Beverages Advertising Code (ABAC) and other industry standards guide responsible marketing

• advertisements cannot show irresponsible drinking behavior or encourage excessive consumption

• there are restrictions on sponsoring events and targeting advertisements at young people through social media or other platforms frequented by minors

• The regulations for alcohol ads on television currently are as follows: After 6pm during sports programs, weekends and public holidays.12pm and 3pm on school days. 8.30 pm and 5am on all other days.

marketing and promotion of tobacco

• the Australian Government has some of the strictest regulations on tobacco advertising, including a complete ban on tobacco advertising across all media

• plain packaging laws require that cigarettes and other tobacco products display graphic health warnings without any brand logos or designs

• tobacco cannot be displayed prominently in stores, and there are significant restrictions on where smoking is allowed, including many public spaces

marketing and promotion of fast food

• advertising of fast food, especially to children, is regulated to prevent misleading health claims and to limit exposure to messages promoting unhealthy diets

• the government enforces rules on nutritional claims and requires transparency regarding ingredients and calorie counts

• in some cases, voluntary industry codes also work alongside government regulations to encourage responsible marketing and portion control in fast food advertising

equal employment opportunity

• Equal Employment Opportunity (EEO) refers to the principle that all individuals should have a fair chance in employment regardless of factors like gender, age, race, religion, disability, or other personal attributes that are not related to job performance

• EEO in Australia is governed by a range of federal and state laws aimed at preventing discrimination, promoting diversity, and ensuring that workplaces are inclusive

• The goal of EEO is to create a workplace environment where everyone has an equal opportunity to succeed based on merit, which benefits both employees and employers by promoting a diverse, talented workforce

key aspects of EEO

• Anti-Discrimination Laws: Laws such as the Sex Discrimination Act 1984, Racial Discrimination Act 1975, Disability Discrimination Act 1992, and Age Discrimination Act 2004 make it illegal for employers to discriminate against employees or potential employees on the basis of gender, race, disability, age, and other protected characteristics

• Fair Work Act 2009: This act establishes the rights and responsibilities of both employees and employers, including the right to a fair workplace and protection against unfair dismissal.

• Workplace Gender Equality Act 2012: This law encourages employers to promote gender equality in the workplace, including equal pay, access to leadership positions, and elimination of gender bias.

• Inclusive Recruitment and Promotion Practices: EEO encourages employers to create policies and procedures that promote diversity and equal opportunities in recruitment, promotion, and career development.

occupational safety and health

• Occupational Safety and Health (OSH), also known as Workplace Health and Safety (WHS), is a framework of laws and regulations in Australia aimed at protecting the health, safety, and welfare of workers

• OSH laws require employers to provide a safe working environment and are enforced by government agencies at both federal and state levels, with the goal of preventing workplace injuries and illnesses

• the purpose of OSH laws in Australia is to reduce workplace injuries, create a culture of safety, and ensure that employers take proactive steps to protect their employees' physical and mental health

key aspects of OSH

• Work Health and Safety Act 2011 (WHS Act): This national legislation provides a framework for ensuring the health and safety of workers. It sets out responsibilities for employers to minimise risks and provide safe work conditions, equipment, and training.

• Duties of Employers: Employers are required to identify and assess risks, implement safety measures, and ensure proper training and supervision for employees to safely perform their jobs. They must also consult with employees on safety matters.

• Employee Rights and Responsibilities: Employees have the right to work in a safe environment and can refuse to carry out work if they believe it poses an immediate risk to their safety. Employees are also responsible for following safety procedures and reporting hazards.

• Safe Work Australia: This is the national body responsible for developing policies and promoting best practices in WHS. However, each state and territory has its own regulatory authority (e.g., WorkSafe, SafeWork) that enforces WHS laws.

• Incident Reporting and Workers’ Compensation: Employers must keep records of workplace incidents and ensure employees have access to workers' compensation if they suffer work-related injuries or illnesses.

intellectual property

• creations of the mind, such as inventions, designs, symbols, names, images, and artistic works

• IP gives individuals and businesses the legal right to protect their creative works, ensuring they can control how their ideas and creations are used

What is the Purpose of IP Laws in Australia?

• IP laws in Australia exist to encourage innovation and creativity by giving creators, inventors, and businesses the exclusive right to use, produce, or sell their creations for a specific period

• This helps protect businesses from unfair competition and allows them to benefit economically from their own creations, while also promoting the wider sharing of knowledge and ideas

patent

• A patent is an exclusive right granted for an invention, which could be a product or process that offers a new way of doing something or provides a new technical solution

• A patent protects inventions by giving the inventor the right to prevent others from making, using, or selling their invention without permission, usually for up to 20 years in Australia

trademark

• A trademark is a unique sign, symbol, word, or logo that identifies and distinguishes a product or service from others in the market.

• Trademarks protect brands by allowing businesses to prevent others from using similar identifiers that could confuse consumers, potentially lasting indefinitely with regular renewal.

registered designs

• A design refers to the visual appearance or aesthetics of a product, such as its shape, pattern, or configuration.

• Design protection helps prevent others from copying the look of a product, provided it is registered and meets certain originality criteria, typically lasting up to 10 years in Australia.

copyright

• protects original works of authorship, such as literature, music, film, software, and art, by giving creators exclusive rights to use and distribute their work.

• Copyright ensures that creators can control how their work is used and benefit financially from it, while also allowing others to access and enjoy the work under certain conditions, such as fair use.

• Unlike patents or trademarks, copyright applies automatically once a work is created and fixed in a tangible form.

process for applying for IP registration

1. Research and Determine Eligibility

   • Confirm that the idea or creation meets the requirements for IP protection, such as originality or distinctiveness.

   • Conduct a search to ensure that the IP is unique and has not already been registered by someone else.

2. Application Submission

   • Prepare and submit an application to IP Australia, the government agency responsible for IP registration.

   • This includes providing details and descriptions of the invention, design, or trademark and may involve drafting technical specifications (for patents) or design representations.

3. Examination

   • IP Australia reviews the application to ensure it meets all necessary legal and technical requirements.

   • They may request additional information or amendments to clarify or strengthen the application.

4. Approval and Registration

   • If the application passes examination, the IP is granted and registered.

   • The holder receives a certificate of registration, and their IP is now legally protected.

5. Maintenance and Renewal

   • Some forms of IP require ongoing fees or renewal applications to maintain protection.

   • Failure to renew can result in the IP rights lapsing, making it available for others to use.

product life cycle

• describes the stages a product goes through from its introduction to the market until its eventual decline and discontinuation

• helps them make informed decisions about marketing, production, pricing, and development strategies at each stage to maximise profitability and adapt to changes in demand

• introduction, growth, maturity, decline

introduction

• Product is launched into the market.

• Focus is on building awareness and generating interest.

• High costs due to promotion and initial production.

• Limited sales volume and often low or negative profits.

• Strategies:

  • Focus on building product awareness and attracting early adopters.

  • Invest in marketing to educate consumers and create demand.

  • Pricing strategies might vary, either setting a high price to recover development costs or a lower price to gain market share.

growth

• Product gains traction, and sales start to increase rapidly.

• Increased market acceptance and brand recognition.

• Production costs decrease due to economies of scale.

• Profits rise, and competitors may enter the market.

• Strategies:

  • Scale up production to meet increasing demand and maximise market share.

  • Continue to invest in marketing to differentiate the product from competitors and expand customer loyalty.

  • Businesses can also improve the product based on customer feedback.

maturity

• Sales growth slows as the market becomes saturated.

• Focus shifts to maintaining market share and differentiating from competitors.

• Prices and profits may stabilise or decrease due to competition.

• Product improvements or variations are introduced to extend the life cycle.

• Strategies:

  • Compete with similar products by emphasizing unique features or adding value (e.g., bundling).

  • Adjust pricing and consider cost-cutting measures to maintain profitability.

  • Marketing efforts may shift toward reminding existing customers and maintaining brand loyalty.

decline

•    Sales and profits decline as demand decreases.

• Market becomes oversaturated or consumer preferences shift.

• Companies may discontinue the product, sell it, or limit marketing to niche segments.

• Focus on reducing costs and managing remaining inventory.

• Strategies:

  • Decide whether to discontinue, sell, or revamp the product.

  • Options include lowering prices to clear inventory, finding new uses or markets, or updating the product to attract renewed interest.

  • The focus may shift to cost management and planning for a replacement product.