The Fair Trading Act applies to both accidental and deliberate conduct, so a compliance programme can pick up mistakes and oversights which could otherwise land a business in trouble.  Remember, also, that a business is responsible for the actions of its staff and agents. 

The existence of an effective compliance programme may in some circumstances also assist a business in establishing a legal defence to any prosecution under the Act.  The court may also view favourably the existence of a compliance programme when imposing penalties for breaches of the Act which occurred despite the diligent supervision of the business.

There are other good reasons for a business to have a compliance programme including:

• improved customer service from better informed staff; and
• better customer relations as the company will be identified by customers as a good business.

Dealing with complaints appropriately can also provide valuable information that will help management identify problems and deal with them before they become big issues.

A programme tailored to a specific business, that explains to staff what they have to do to comply with the Act, will reduce the likelihood of breaches.  In deciding what action to take against a possible breach, the Commission will take into account whether the breach was an isolated event and whether the company has a compliance programme that effectively eliminates systemic breaches of the Act.  The court may also take these factors into account.