ACCC Infringement Notices or Court Proceedings: Understanding Your Response Options

Key Takeaways

• The ACCC has a graduated range of enforcement responses, from infringement notices to court proceedings.
• An infringement notice lets you resolve a matter without admitting liability, but paying it is still a real decision.
• Civil penalty proceedings in the Federal Court can result in substantial penalties set by the Court.
• The right response turns on the strength of the regulator's case and your commercial priorities.
• Early legal advice helps you choose between resolution and defence.

1. 1.The ACCC enforcement toolkit
2. 2.Infringement notices
3. 3.Court-enforceable undertakings
4. 4.Civil penalty proceedings in the Federal Court
5. 5.How to choose between resolution and defence
6. 6.Step 1: Get an honest assessment of the allegation
7. 7.Step 2: Map the likely range of outcomes
8. 8.Step 3: Engage early and constructively
9. 9.What this means for your business
10. 10.Frequently Asked Questions

When the ACCC suspects a contravention, it can choose from several enforcement paths, from infringement notices through to civil penalty proceedings in the Federal Court. Knowing what each path means for your business is what lets you respond on a considered basis rather than reacting to whichever step the regulator takes first.

The ACCC enforcement toolkit

The ACCC does not always head straight to court. Its responses run from educative and administrative measures, through infringement notices and court-enforceable undertakings, up to civil penalty proceedings in the Federal Court. Which tool it reaches for depends on the seriousness of the conduct, the harm caused, whether the conduct was deliberate and how the business has cooperated.

Infringement notices

An infringement notice is a mechanism by which the ACCC alleges a contravention and offers you the chance to pay a specified amount. Paying it is generally not an admission that the law has been contravened. For some businesses that makes it an attractive way to resolve a matter quickly and avoid the cost, time and publicity of litigation.

Paying is still a real decision, not an automatic one. Consider whether the conduct in fact occurred, what compliance changes will be expected and whether resolving now is genuinely in your interests. Sometimes the better course is to contest the underlying allegation rather than pay.

Court-enforceable undertakings

Where the ACCC has concerns but a negotiated outcome fits, it may accept a court-enforceable undertaking under section 87B of the Competition and Consumer Act 2010 (Cth). This is a formal commitment, enforceable in court, to do or refrain from doing certain things, such as running a compliance program or offering redress. It lets a business resolve matters cooperatively and show good faith. We cover this option in detail in our guide on court enforceable undertakings.

Civil penalty proceedings in the Federal Court

For more serious matters, the ACCC may bring civil penalty proceedings in the Federal Court. If a contravention is established, the Court sets the penalty on the facts, within the maximums Parliament has fixed.

Those maximums are high. For conduct on or after 28 March 2026, the maximum penalty for a body corporate per contravention is the greater of $100 million, three times the value of the benefit obtained or where that benefit cannot be determined, 30% of adjusted turnover during the breach period. For an individual it is $2.5 million per contravention. These are ceilings, not forecasts. The penalty the Court actually orders depends on the seriousness of the conduct, the loss caused and the circumstances of the business. Court proceedings also carry reputational consequences and demand real management time, so defending them needs careful preparation and experienced representation, which our dispute resolution and litigation team can provide.

How to choose between resolution and defence

The real question is usually whether to resolve or defend, and there is no single right answer. A few things drive it.

• If the evidence of contravention is strong, resolution may be sensible. If the case is weak or the law is genuinely arguable, defence may be the better course.
• The potential exposure matters. Penalties set by the Court can be large, and that has to be weighed against the cost and certainty of resolving earlier.
• Court proceedings are public, and some businesses place a high value on avoiding prolonged scrutiny.
• Management time, cost and the desire for certainty all weigh in.

Step 1: Get an honest assessment of the allegation

Before deciding anything, get a candid view of whether the conduct occurred and whether it contravenes the law. It needs to be honest, even uncomfortable, because the rest of the strategy rests on it.

Step 2: Map the likely range of outcomes

Once you understand the allegation, map the realistic outcomes for each path: cost, time, exposure and reputational impact. That lets you compare options on a like-for-like basis instead of reacting to the regulator's latest move.

Step 3: Engage early and constructively

Whether you resolve or defend, engaging early with the ACCC through your lawyer tends to produce better outcomes than silence or hostility. Cooperation is one of the factors the regulator weighs, and it can shape which tool it uses.

What this means for your business

An ACCC matter is rarely binary. Between doing nothing and fighting in court there are several intermediate options, and the best result usually comes from picking the right one early. A response that weighs the evidence, the exposure and your commercial priorities beats a reflex to either pay or fight.

Frequently Asked Questions

Is paying an infringement notice an admission of guilt?

Generally no. Paying is not an admission that you contravened the law. It is still a real decision with practical consequences, so take advice before paying.

Can I dispute an infringement notice?

You are not obliged to pay. If you consider the conduct did not occur or did not contravene the law, you can contest the matter. The right course depends on the strength of the case and your priorities.

What penalties can the Federal Court impose?

If a contravention is established, the Court sets the penalty on the facts, within the statutory maximums. For conduct on or after 28 March 2026 the body-corporate maximum per contravention is the greater of $100 million, three times the benefit or 30% of adjusted turnover, and the individual maximum is $2.5 million. The actual penalty is usually well below the maximum.

How does the ACCC decide which enforcement tool to use?

It weighs the seriousness and deliberateness of the conduct, the harm caused and the cooperation of the business. More serious matters are more likely to attract court proceedings.

Should I negotiate or defend?

It depends on the strength of the case, your exposure and your commercial priorities. Early advice lets you make that decision on an informed basis.

This is general information, not advice on your situation. If you are weighing up how to respond to the ACCC, get in touch or call (07) 3519 5616.

This article is for general information purposes only and does not constitute legal advice and should not be relied on as such. While we take reasonable care to ensure the accuracy of the information provided, we make no representations or warranties as to its completeness, currency or reliability. We accept no liability for any loss or damage arising directly or indirectly from the use of, or reliance on, this website's content. You should always seek professional advice tailored to your specific circumstances before acting on any information in this article. Liability limited by a scheme approved under Professional Standards Legislation.