The Australian Competition and Consumer Commission (ACCC) has denied (6 February) authorisation for the Infant Nutrition Council’s industry code that sought to restrict the marketing of infant formula, citing concerns over its effectiveness and potential anticompetitive impact.
The Council had applied to extend the Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (MAIF Agreement) for another five years. However, the ACCC found that the voluntary and self-regulatory nature of the agreement, along with its inability to address modern digital marketing strategies, limited its effectiveness.
“We are not satisfied in all the circumstances that the MAIF Agreement is likely to result in public benefits that would outweigh the public detriments likely to result from it,” said ACCC Acting Chair Mick Keogh.
Concerns Over Competition and Effectiveness
The MAIF Agreement was originally introduced in 1992 as part of Australia’s response to its commitments under the World Health Organization’s International Code of Marketing of Breast Milk Substitutes. It restricts manufacturers and importers of infant formula who voluntarily opt in from advertising formula for infants under 12 months old.
However, the ACCC found that the agreement was unlikely to provide the claimed public benefits and could instead reduce competition between formula manufacturers and importers.
“While the link between breastfeeding and improved health outcomes for mothers and children is undisputed, we are concerned there are several factors that undermine the effectiveness of the MAIF Agreement in protecting breastfeeding rates,” Mr Keogh said.
The decision follows a public consultation process, during which broader health policy concerns were raised, including whether marketing restrictions should extend to formula for children over 12 months old and whether retailers should also be subject to similar regulations. These issues, the ACCC noted, fall outside its competition law assessment and are matters for the Australian Government.
Government Plans to Introduce Mandatory Regulations
The Department of Health and Aged Care recently commissioned an independent review of the MAIF Agreement, concluding that it was no longer fit for purpose. The review recommended replacing it with a mandatory, legislated code, which the Government has accepted.
The Department confirmed in its submission to the ACCC that it plans to introduce a legally enforceable framework restricting infant formula marketing, which is expected to take around two years to implement.
The ACCC’s final determination on the matter is available on its public register.
