U2.06 — Influence of Government Policy on Product Labelling, Trading Hours and Advertising Practices to Children

Overview

Dotpoint 6: influence of government policy on product labelling, trading hours and advertising practices to children.

Government policy affects businesses in many everyday situations. In this dotpoint, the focus is on three key areas:

  • product labelling — rules about what information must appear on goods and packaging
  • trading hours — rules about when different types of shops are allowed to open
  • advertising practices to children — rules and restrictions on how some products can be promoted to younger audiences
Everyday examples of government policy affecting products, shopping and advertising
🏷️ Product labelling

Why There Are Rules on Product Labelling

Product labelling is regulated because consumers need clear, accurate and safe information about what they are buying. Government policy helps protect health, reduce misleading claims and support informed consumer choice.

  • helps consumers know what a product is and what it contains
  • protects people with allergies or medical concerns
  • reduces false or misleading claims
  • improves safety and informed decision-making

Australian/WA Specifics of Government Policy on Product Labelling

Summary Examples
Food labels Packaged foods commonly need ingredient lists, allergen declarations, nutrition information panels and date marking such as use-by or best-before dates. Breakfast cereal, yoghurt, muesli bars and frozen meals all show ingredients and nutrition information, while allergens such as milk, egg, soy or peanuts must be clearly declared.
Food label example
Plain-English allergen rules Australia strengthened allergen labelling so allergens must be easier to find and written in clearer language for consumers. Common allergens are peanuts, eggs, milk, and fish. A snack bar label should clearly state “contains peanuts” or “contains milk” rather than hiding the information in technical ingredient wording.
Allergen label example
Country-of-origin labels Many food products sold in shops must show where the food was grown, produced, made or packed so consumers can make informed choices. Honey, canned tomatoes, frozen vegetables and packaged meat may show the kangaroo logo, a bar chart or wording such as “Made in Australia from imported ingredients”.
Country of origin label example
Medicine and pharmacy labels Therapeutic goods must show important information clearly, including ingredients, dosage directions, warnings and safe-use details. Panadol, Nurofen, antihistamines and cough medicine display dose instructions, age guidance and warnings about incorrect use.
Medicine label example
Alcohol warning labels Packaged alcoholic drinks in Australia must carry pregnancy warning information so consumers are alerted to the risks of alcohol use during pregnancy. Wine bottles, RTDs and spirit bottles commonly show the pregnancy warning pictogram and warning wording on the label or package.
Alcohol pregnancy warning label example
Tobacco packaging and warnings Tobacco products are heavily regulated and must use standardised packaging and strong health warnings rather than eye-catching branding. Cigarette packs use graphic health warnings, plain packaging colours and much less branding freedom than normal retail products.
Tobacco packaging example
Safety labels on goods Some products must carry safety warnings because they can cause serious harm if used incorrectly. Products containing button batteries need warning labels because of the risk of serious injury if swallowed by a child.
Safety label example
Care labels on clothing and textiles Some goods are labelled so consumers know how to use or maintain them properly after purchase. School shirts, jumpers, towels and bedding often show washing, drying and ironing instructions through care symbols or written directions.
Care label example
Cosmetics Cosmetics must be labelled clearly so consumers can identify ingredients and avoid misleading claims about what the product does. Shampoo, face cream, sunscreen and makeup sold at Priceline, Mecca or Chemist Warehouse need clear ingredient details and cannot make unsupported promises.
Cosmetics label example

Effect of Policy on Businesses

How labelling policy affects businesses

  • businesses may need to redesign packaging when rules change, which can cost time and money
  • products must be checked carefully before being sold, especially if they involve health, safety or food claims
  • imported goods may need relabelling to meet Australian standards before they can be sold locally
  • staff in product design, legal, quality control and marketing all need to understand the rules
  • mistakes can lead to recalls, customer complaints, damaged trust or legal trouble
  • businesses cannot simply use labels as marketing tools if the claims are misleading or cannot be supported
  • extra compliance costs may be harder for small businesses to absorb than for large companies
🕒 Trading hours

Why There Are Rules on Trading Hours

Trading hours are regulated because governments try to balance consumer convenience, competition, worker conditions and community expectations. In WA, the rules are a clear example of how government policy directly shapes when businesses can operate.

  • balances convenience with fairness
  • manages competition between different shop types
  • responds to worker and community concerns
  • allows different rules for different categories of retail shops

Australian/WA Specifics of Government Policy on Trading Hours

Summary Examples
General retail shops These are the normal larger retail shops that do not qualify as small retail shops, special retail shops or filling stations. Examples include Myer, Kmart, Big W, Target, JB Hi-Fi and major fashion stores in Perth shopping centres. Perth metro hours: 8.00am–9.00pm Monday to Friday, 8.00am–5.00pm Saturday, 11.00am–5.00pm Sunday and many public holidays. Closed on Good Friday, Christmas Day and ANZAC Day.
General retail shops example
Small retail shops These are shops that meet the legal requirements to be certified as small retail shops in WA. Examples may include some independently run suburban stores and family-operated shops that qualify under the law. These shops can trade 24 hours a day, every day of the year.
Small retail shop example
Special retail shops These are shops considered necessary for emergency, convenience or recreation goods, but they must fit the approved legal category. Examples can include certain pharmacies and other approved retail types. These shops can trade from 6.00am to 11.30pm every day of the year.
Special retail shop example
Filling stations Fuel stations are treated differently because they provide an essential service and are not handled like normal general retail shops. Service stations such as Ampol, BP or Puma can operate 24 hours. However, they do not get unlimited freedom to sell every type of non-fuel product outside normal retail trading rules.
Filling station example
Regional WA differences Regional trading hours are not always the same as Perth metropolitan rules because local governments can seek different approved arrangements. A regional centre may have different approved hours from Perth, so the same chain store could face different trading limits depending on location.
Regional WA example
Extra festive trading hours The WA Government can approve extra trading hours at certain times of the year. Before Christmas, Perth metro general retail shops may get additional approved hours to handle festive demand and busier shopping periods. These extra hours need formal approval rather than happening automatically.
Extra festive trading example

Effect of Policy on Businesses

How trading-hours policy affects businesses

  • businesses cannot always open when demand is highest because legal trading windows may limit them
  • rosters, wages and staffing plans must be built around government rules, not just customer demand
  • some businesses feel disadvantaged if other shop categories are allowed to trade longer
  • shopping centres and large chains may lose potential sales when forced to close on certain public holidays or outside approved hours
  • small retailers with more flexible hours may gain an advantage in convenience-based shopping
  • regional businesses may have different opportunities or restrictions depending on local approvals
  • business strategy, promotions and stock planning often need to change during festive periods or approved extended-hour periods
📺 Advertising practices to children

Why There Are Rules on Advertising Practices to Children

Advertising to children is regulated because children are more vulnerable to persuasion and may not fully understand how advertising works. Government policy tries to reduce harmful, unfair or misleading promotion aimed at young audiences.

  • children may not recognise persuasive intent clearly
  • ads can influence food choices, wants and pressure on parents
  • some products are seen as too risky or inappropriate to promote to children
  • misleading child-related advertising can cause harm

Australian/WA Specifics of Government Policy on Advertising Practices to Children

Summary Examples
Children’s advertising standards Australia has child-focused advertising rules that expect advertisers to act responsibly when directing messages at children. Toy ads, game promotions and children’s entertainment marketing should not exploit children’s inexperience or pressure them unfairly. A campaign from Lego or Nintendo aimed at younger audiences would still need to be responsible.
Children's advertising standards example
Food and beverage advertising Food and beverage advertising faces restrictions and criticism when occasional or less healthy products are clearly targeted at children. Fast-food meal deals, collectible promotions and colourful junk-food campaigns aimed at children are common examples students would recognise. McDonald’s and Hungry Jack’s are two obvious brands that must be careful with how child-focused promotions are presented.
Food and beverage advertising example
Gambling ads in children’s viewing times Gambling advertising is restricted during certain children’s program periods to reduce children’s exposure to betting promotion. Betting ads from Sportsbet or TAB cannot run freely during certain periods linked to children’s programming or programs principally directed to children.
Gambling advertising example
Live sport gambling restrictions Australia has extra restrictions on gambling advertising during live sport on broadcast and streamed services, especially in stronger protected viewing periods. AFL, NRL and cricket broadcasts are major examples where betting ads from Sportsbet or Ladbrokes are tightly controlled around live play and surrounding time periods.
Live sport gambling restriction example
Therapeutic goods advertising Therapeutic goods advertising cannot be directed to children under 12, and advertising to older children is also limited. A medicine, vitamin or health product brand sold through Chemist Warehouse or Priceline cannot simply market directly to young children in the same way as toys or games.
Therapeutic goods advertising example
Influencers and social media Modern policy issues include online ads, influencers, sponsored posts and platform targeting, not just TV commercials. If a TikTok or YouTube creator is paid by LEGO, Nike or Coca-Cola to promote products to a younger audience, the post should be clearly sponsored and not disguised as ordinary content.
Influencer advertising example
Placement and timing rules Policy is not only about what an ad says. It is also about where and when it appears. A KFC ad during family viewing time, a Coca-Cola promotion around children’s content, or a Disney YouTube pre-roll placed before child-focused videos would raise stronger concerns than the same ad shown late at night to adults.
Timing rules example

Effect of Policy on Businesses

How advertising policy affects businesses

  • businesses may need to change the timing, placement and wording of campaigns before they are approved
  • some industries such as gambling, fast food and therapeutic goods face tighter restrictions than ordinary consumer brands
  • marketing teams may need legal or compliance checks before launching campaigns aimed at families or younger audiences
  • child-focused promotions, mascots, collectables or influencer partnerships may need to be redesigned or removed
  • digital strategy is affected too, because social media targeting and influencer promotion can still create regulatory risk
  • breaking the rules can lead to complaints, investigations, penalties and reputational damage
  • businesses may lose some promotional freedom, but stricter rules can also push them to market more responsibly

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Biz Fact: At Christmas, extra trading hours in WA often need formal approval — businesses do not automatically get to stay open later.