The ACCC has decided to authorise an updated version of the Shopping Centre Council of Australia’s Casual Mall Licensing Code of Practice until 31 December 2030.
The code is voluntary and aims to regulate the practice of casual mall licensing in shopping centres (also known as ‘pop-up’ retailing). The code's purpose is to ensure that casual mall licensing practices are fair to shopping centre owners and managers, shopping centre retailers and casual mall licensees. The code prohibits provision of casual mall licences in certain circumstances where they might harm permanent shopping centre tenants.
The ACCC has previously authorised the code in 2007, 2013 and 2017. The updated version of the code that the ACCC has decided to authorise formalises improvements to the code’s operation that have taken place since 2017, including increased retailer representation on the Code Administration Committee and the appointment of an independent Chair.
The ACCC considers authorisation of the code is likely to result in public benefits by providing greater transparency and certainty to lessees as well as some transaction cost savings, and that the code’s dispute resolution mechanism increases the likelihood that the public benefits will be realised. The ACCC considers the code is likely to result in minimal public detriment, and that the likely public benefits will outweigh the likely public detriments.
Authorisation provides businesses legal protection for arrangements that may otherwise risk breaching the law but are not harmful to competition and/or are likely to result in overall public benefits. In this case, the SCCA sought authorisation because the code contains provisions that restrict the supply of casual mall licensing by shopping centre owners and managers.
Further information about the ACCC’s decision is available on the ACCC public register at Shopping Centre Council of Australia Limited.