ACCC Rejects Infant Formula Industry Code: What It Means for Breastfeeding and Formula Promotion

In a significant decision, the Australian Competition and Consumer Commission (ACCC) has rejected the Infant Nutrition Council's proposal for a new industry code aimed at restricting the advertising and promotion of infant formula. This decision means that the existing Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement (MAIF Agreement) will not be renewed for another five years.

What is the MAIF Agreement?

Originally established in 1992, the MAIF Agreement was created as part of Australia’s commitment to the World Health Organisation’s International Code of Marketing Breast Milk Substitutes. The agreement aimed to restrict the promotion and advertising of infant formula to encourage breastfeeding, which is linked to improved health outcomes for both mothers and children.

The agreement, however, requires authorisation from the ACCC to be implemented, and this time, the ACCC denied the application for renewal.

Why Did the ACCC Reject the Code?

The ACCC’s acting chair, Mick Keogh, explained that while the health benefits of breastfeeding are widely acknowledged, the MAIF Agreement's effectiveness in protecting breastfeeding rates had become questionable. According to the ACCC, the existing code may no longer serve the public interest and could have unintended negative effects on competition within the infant formula market.

“We are not satisfied that the MAIF Agreement and associated guidelines are likely to result in a net public benefit to justify authorisation," said Keogh. "In fact, we consider that they are likely to result in some public detriment through reduced competition between infant formula manufacturers and importers."

In simpler terms, the ACCC believes that while the agreement may aim to protect breastfeeding, it could also hinder healthy competition between infant formula manufacturers and importers, which might ultimately reduce consumer choice and product innovation.

The Case for Stronger Regulations

An independent review commissioned by the Department of Health and Aged Care, which was conducted earlier, highlighted concerns about the effectiveness of the MAIF Agreement. The review concluded that the agreement no longer served its original purpose and suggested that it should be replaced with a more robust, legislated mandatory code.

The review's findings align with the ACCC’s concerns, showing that the current framework may no longer be enough to address the complex issues around breastfeeding promotion and formula marketing. A stronger regulatory framework could better balance the promotion of breastfeeding while ensuring that infant formula manufacturers operate in a fair, competitive environment.

What’s Next for Infant Formula Promotion?

Following the ACCC’s decision, the future of infant formula marketing in Australia remains uncertain. While the current voluntary code is no longer authorised for continued use, the government may look into new regulatory measures to replace it.

There is also the possibility that a new, mandatory legislated code will be developed, as suggested in the independent review. Such a code would likely place stricter controls on the marketing of infant formula, while still supporting the need for access to formula for families who may require it.

For now, the industry will need to adjust its approach to advertising and promotion in line with the ACCC’s decision. However, the overarching goal remains clear: to protect and promote breastfeeding while ensuring that formula companies remain transparent, competitive, and responsible in their marketing efforts.