Spending patterns + Unhealthy products + Gov Polocies + WHS Acts

Spending Patterns

The regular or typical ways in which individuals or households allocate their money over time. Change depending on whether economy is strong or weak. Influenced by lifestyle needs and consumer preferences.

Level of economic activity

High economic activity: Low unemployment, increased wages, more choice in G&S, business compete on service and value, increase in inflation/interest rate.

Low economic activity: Higher unemployment, decreasing wages, less choice in G&S, business compete on price, may result in deflation and decreasing interest rates.

Social Norms

Norms are the rules of society for behaviours that are considered acceptable and expected. Norms describe lifestyle choices of people in a community, how they interact and their habits. For a person to be identified as being in a group of target market they will conform to certain norms.

BPI

Consumers spend their money based on designs about things such as the ethics of the business, it environmental strategies and its involvement with the community. Today’s market is similar, prices are similar and spending decisions are difficult because there is a huge amount of choice .Consumers will buy from businesses that share their values and have a good BPI.

Sustainability

Environmental social norms promote change include recycling, no single-use plastics and flight shaming. While promoting social norms has a valuable role in promoting pro-environmental actions, we conclude that norms are most likely to be effective where individual actions immediately have an obvious and local effect.

Promoting Unhealthy Products

Unhealthy products have high costs to society, still remain legally available, and businesses sell them to earn income. Gov regulates sales and marketing to minimise harm. The aim of regulations is to protect children from being influenced by the advertising.

Alcohol

Children’s Television Industry Code of Practice (CTICP) restrict alphol advertising from 8:30pm to 5 am and from 12 pm to 3 pm on school days (set by the gov.) Alcohol advertising is also regulated by ACL and ACCC.

Alcohol Beverages Advertising Code (ABAC)

The alcohol Beverages Advertising Code (ABAC) is a code of practice developed by the alcohol industry (funded). Aims to stop all advertising that will encourage drinking and stop promotion of irresponsible and excessive drinking.

ABAC disadvantages

Criticised for being powerless - supplier needs to register from them to be regulated.

Live sports telecast are exempt - alcohol companies sponsor competitions and events in Aus.

ABAC does not cover social media.

Food Standards Australia New Zealand Act (1991)

Under the Food Standards Australia New Zealand Act (1991), compulsory for labels on alcohol drinks to show alcoholic strength and number of standard drinks contained in it. No requirements for health warning or nutritional information

In WA businesses that want to sell alcohol must be licensed.  It is illegal to sell alcohol to someone aged under 18.

Tobacco

Tobacco is a legal product with negative health consequences.  Govs have strict laws about marketing and promotion to protect children from being encouraged to smoke and discourage adults from smoking. 

Tabaco Laws

1992 - illegal to publish or broadcast tobacco advertising. 

2012 - Online advertising has been illegal

2010 - WA banned the display of cigarette packets in shops (30% drop in purchases)

2012 - cigarettes packets have been required to be plain packaging. 

Cigarette Packaging

Research shows that plain packaging will:

•Emphasise the health warning messages

•Limit the use of packaging to persuade people that smoking isn’t harmful

•Reduce the attractiveness of the tobacco packaging to children

Fast food

There are rules regarding advertising during children’s television times as the peak viewing period for under 14 years old is between 5:00 pm and 9:00 pm when fast food ads are also the most frequent.  There is industry self regulation, but like the alcohol code of practice it is ineffective.

Advertisements cannot be directed at children and must promote a healthy lifestyle.  The requirement to show a healthy lifestyle is why unhealthy food products are often advertised with children playing sport or dancing, or in a lunch box next to fruit.

Fast food

Children are exposed to fast food marketing through television, movies and electronic games, prizes, competitions, sponsorship, billboards and on the internet including advergaming.

Fast food businesses are required to display nutritional and kilojoule information.

There is a strong lobbying by health and community groups for governments to restrict or ban fast food marketing and promotion to try and decrease consumption.

Impact of Gov Policy

Set laws and regulations about how businesses interact with customers, employees and the community. Lobbying can be used - make submissions to the committees and talk to agencies, members of parliament to explain what they want.

Product labelling

The main issues for labelling are ingredients, health and safety information, genetically modified food and country of origin.  Labels provide the following information to consumers:

•Ingredients and nutritional profile

•Used by date

•Manufactured details

•Instructions for use

•Country of origin.

Competition and Consumer Act (2010)

The Competition and Consumer Act (CCA) (2010) sets rules for product labelling and prohibits businesses from making false or misleading claims about the place of origin of products.  The Act requires that labels give the following information:

•Mandatory consumer product information

•Industry specific regulations

•Customer information which is required for some imported products.

Under the Competition and Consumer Act, the mandatory labelling requirements for cosmetic include:

•Ingredients information should be available to consumers at the point of sale.

•Listing of product ingredients must be on the container or packed with the container.

•Ingredients need to appear in descending order calculated by either mass or volume.

Trading hours

State Gov. set regulations for opening times and closing times. Some businesses so not follow this regulation, as their hours are deregulated. These include businesses such as petrol stations , delis, clothing shops, takeaway food, restaurants, cafes (They can open for 24 hours for 365 days a year). Trading hours are not compulsory, but some business may open due to competitors (missed sales).

Retail Trading Hours Act (1987)

In WA, the Retail Trading Hours Act (1987) regulated when retail businesses can trade in the metropolitan area. The Act was amended to allow retail shops to open on Sunday between 11 am and 5 pm and most public holidays.  Trading hours were also expended on week nights.

Changes to trading hours

Additions costs to businesses. Costs include:

Penalty rates for staff working longer hours and on weekends

Marketing to customers to advise them of longer hours trading hours

Increase costs paid to shopping centre owner such as cleaning, advertising and security.

Advertising practices to children

Young children do not have the cognitive ability and experience to understand advertising. There are community groups and health advocates trying to persuade governments to implement regulations restricting and banning junk food advertising to children.  Junk food businesses are lobbing governments to persuade them not to restrict advertising because they believe that will result in decreased in and profit. 

Alcohol cannot be advertised during P and C programs. 

Children’s Television Standards

Children’s Television Standards (CTS) classify television programming as C (children) or P (preschool).  Advertising broadcasting during or directly before or after a C and P programs must meet requirements set out in the CTS.

The CTS does not allow advertising during P programs and limitations are places on commercials during C programs.  A maximum of five minutes for commercials are permitted in every 30 minutes of C program.  CTS 30 states that “No advertisement may mislead of deceive children”.

CTS requirements for the presentation of prizes, competitions and free gifts, and the use of popular characters. 

The CTS prohibits businesses to focus on a toy, gift or prize as the reason to buy a product. Advertisements for children must not encourage discrimination or prejudice towards groups or people or encourage children to be unsafe. 

CTS 9 states that a presenter may not recommend, sell or endorse a product nor encourage children to use it.

CTS 22

CTS 22 states that an advertisement during a C and P program cannot use a character or person out of the C and P programs. (Characters from the kid show cannot be in the ad.)

Advertisements and food manufacturers know how ‘pester power’ is useful.  They know that if their advertising targets children they will nag their parents until they buy the products.  Children don’t have the experience and understanding of media and advertising and they are easier to influence and mislead.  The purpose of rules about advertising to children is to protect them from being exploited by businesses.

Equal Opportunity Act 1984 (WA)

It is unlawful to discriminate in employment or work because of attributes such as sex, martial status, pregnancy, family responsibility or family status, race, religious or political conviction, impairment, age, or gender.  Exceptions are allowed if they aim to achieve equality.

Aims of equal opportunity legislation:

•Eliminate discrimination

•Eliminate sexual harassment and racial harassment

•Promote equality of men and women

•Promote equality of all, regardless of race, convictions, impairment or age.

Businesses should consider:

•Equal employment opportunity policies

•Training for employees on equal opportunity

•An advice and complains process for staff

•How to respond to concerns about discrimination or lack of equal opportunity

•Keeping up to date with changes in legislation.

Fair Work Act 2009 (Commonwealth)

There are two systems of employment law for Western Australian (WA) businesses:

National Fair Work system

The national Fair Work system covers private sector businesses that are trading or financial corporations (Pty Ltd) and incorporated partnerships.  It also covers not-for-profit organisations which are constitutional corporations and Australian government employees.

If a business is run as a sole trader in WA and changes to a company, it may move to the national system.  The provisions of the national Fair Work Act 2009 on notice of termination, parental leave, and sexual harassment, apply to the WA state system.

The relationship between business and employees is regulated to provide a safety net of entitlements, enable flexible working arrangements, provide fairness at work and prevent discrimination against employees.

The Fair Work Act (2009) is supported by the minimum National Employment Standards, awards, and the national minimum wage (covered in Unit 1).

State industrial relations system

The state system covers private sector businesses that are sole traders, unincorporated partnerships, other unincorporated entities, household employers, and not-for-profit organisations that are not constitutional corporations, and WA public sector employees.

The provisions of the minimum working age requirements and Long Service Leave Act are WA state laws that apply to national systems employers.

Work Health and Safety Act 2020 (WA)

Laws exist to ensure a safe and healthy work environment focusing on protecting both mental health and physical safety.

A business should identify hazards, maintain risk control measures and review these controls .  Businesses must manage risk in the areas of:

•Workplace management tasks and the work environment

•Noise

•Hazardous manual tasks and airborne contaminants

•Confined spaces and remote or isolated work

•Falls and falling objects

•Electrical safety

•Hazardous chemicals and flammable substances

Lead and asbestos.