--- title: "ACCC Infringement Notices vs Court Proceedings Explained" description: "Compare ACCC infringement notices and Federal Court civil penalty proceedings, the maximum penalties that apply and how to decide whether to resolve or defend under the Australian Consumer Law." lang: en-AU json-ld: | [ { "@context": "https://schema.org", "@type": [ "LegalService", "LocalBusiness" ], "@id": "https://www.astrislaw.com/#organization", "name": "Astris Law", "legalName": "Astris Law Pty Ltd", "alternateName": [ "Astrons General Counsel", "Phronesis Litigation", "HeadStart Counsel" ], "url": "https://www.astrislaw.com", "logo": { "@type": "ImageObject", "url": "https://www.astrislaw.com/android-chrome-512x512.png", "width": 512, "height": 512 }, "image": "https://www.astrislaw.com/android-chrome-512x512.png", "description": "The Astris Law group gives directors and business owners the right legal capability for whatever their business needs, across corporate, disputes and regulatory. 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Paying is not an admission that you contravened the law. It is still a real decision with practical consequences, so take advice before paying." } }, { "@type": "Question", "@id": "https://www.astrislaw.com/article/accc-infringement-notices-vs-court-proceedings#faq-2", "name": "Can I dispute an infringement notice?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "@id": "https://www.astrislaw.com/article/accc-infringement-notices-vs-court-proceedings#faq-3", "name": "What penalties can the Federal Court impose?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "@id": "https://www.astrislaw.com/article/accc-infringement-notices-vs-court-proceedings#faq-4", "name": "How does the ACCC decide which enforcement tool to use?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "@id": "https://www.astrislaw.com/article/accc-infringement-notices-vs-court-proceedings#faq-5", "name": "Should I negotiate or defend?", "acceptedAnswer": { "@type": "Answer", "text": "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." } } ] }, { "@type": "HowTo", "@id": "https://www.astrislaw.com/article/accc-infringement-notices-vs-court-proceedings#howto", "name": "ACCC Infringement Notices or Court Proceedings: Understanding Your Response Options", "description": "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.", "step": [ { "@type": "HowToStep", "position": 1, "name": "Get an honest assessment of the allegation", "text": "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." }, { "@type": "HowToStep", "position": 2, "name": "Map the likely range of outcomes", "text": "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." }, { "@type": "HowToStep", "position": 3, "name": "Engage early and constructively", "text": "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. 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. 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. 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. 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. 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. 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." } ] } ] } ] --- [Skip to main content](#main-content) The Astris Law Group Astris Astris Law [Astrons Astrons General Counsel ](https://astrons.astrislaw.com)[Phronesis Phronesis Litigation ](https://phronesis.astrislaw.com)[HeadStart HeadStart Counsel ](https://headstartcounsel.astrislaw.com) [![Astris Law S Icon](/assets/astris-logo-icon-kBkGra_r.png)![Astris Law](/assets/astris-logo-full-wbEHTWR5.png)](/) [About](/about)[The Group](/philosophy)[Practice Areas](/practice-areas)[Articles](/articles)[Contact](/contact)[Start here](/contact) [← Back to Articles](/articles)| [Regulatory & Compliance →](/practice/regulatory-compliance-consumer-law) Insights 2 June 2026 • 5 min read # ACCC Infringement Notices or Court Proceedings: Understanding Your Response Options ## Summary 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. Last reviewed 2 June 2026 · Reviewed by [Jamie Nuich](/attorney/jamie-nuich), Legal Practitioner Director ## 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. ![A Queensland courtroom, illustrating the choice between ACCC infringement notices and court proceedings](/images/articles/qld-courts.jpg) In This Article 1. [1. The ACCC enforcement toolkit](#the-accc-enforcement-toolkit) 2. [2. Infringement notices](#infringement-notices) 3. [3. Court-enforceable undertakings](#court-enforceable-undertakings) 4. [4. Civil penalty proceedings in the Federal Court](#civil-penalty-proceedings-in-the-federal-court) 5. [5. How to choose between resolution and defence](#how-to-choose-between-resolution-and-defence) 6. [6. Step 1: Get an honest assessment of the allegation](#step-1-get-an-honest-assessment-of-the-allegation) 7. [7. Step 2: Map the likely range of outcomes](#step-2-map-the-likely-range-of-outcomes) 8. [8. Step 3: Engage early and constructively](#step-3-engage-early-and-constructively) 9. [9. What this means for your business](#what-this-means-for-your-business) 10. [10. Frequently Asked Questions](#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](/article/court-enforceable-undertakings-accc-when-to-negotiate). ## 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](/practice/dispute-resolution-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](/contact) or call (07) 3519 5616. ## Sources and References - Legislation Competition and Consumer Act 2010 (Cth) - Legislation Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010 (Cth)) - Regulator Australian Competition and Consumer Commission ![Jamie Nuich, Legal Practitioner Director at Astris Law](/images/jamie-nuich-portrait.jpg) ### [Jamie Nuich](/attorney/jamie-nuich) Legal Practitioner Director - Admitted as a Solicitor of the Supreme Court of Queensland - Admitted as a Solicitor of the High Court of Australia - 15+ years advising directors on commercial law, litigation, regulatory investigations and workplace matters Jamie is the founder and Legal Practitioner Director of Astris Law. She has acted first-hand for directors in urgent injunction applications, shareholder disputes, ASIC prosecutions and regulator-led investigations across Federal and State jurisdictions. She is a solicitor advocate who runs her own applications and trials where appropriate, so clients keep continuity from first advice through to hearing. Commercial Litigation Corporate & Commercial Regulatory & Compliance Employment & Workplace Anti-Money Laundering (AML/CTF) Disciplinary & Professional Conduct [LinkedIn](https://www.linkedin.com/in/jamienuich/)[QLS Register of Solicitors](https://www.qls.com.au/register-of-solicitors/jamie-leanne-nuich)[You and the Law directory](https://www.youandthelaw.com.au/organisation/98611/astris-law-pty-ltd)[Astris Law profile](/attorney/jamie-nuich) Share [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.astrislaw.com%2Farticle%2Faccc-infringement-notices-vs-court-proceedings "Share on LinkedIn")[](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.astrislaw.com%2Farticle%2Faccc-infringement-notices-vs-court-proceedings&text=ACCC%20Infringement%20Notices%20or%20Court%20Proceedings%3A%20Understanding%20Your%20Response%20Options "Share on X")[](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.astrislaw.com%2Farticle%2Faccc-infringement-notices-vs-court-proceedings "Share on Facebook")[](mailto:?subject=ACCC%20Infringement%20Notices%20or%20Court%20Proceedings%3A%20Understanding%20Your%20Response%20Options&body=When%20the%20ACCC%20suspects%20a%20contravention%2C%20it%20can%20choose%20from%20several%20enforcement%20paths%2C%20from%20infringement%20notices%20through%20to%20civil%20penalty%20proceedings%20in%20the%20Federal%20Court.%20Knowing%20what%20each%20path%20means%20for%20your%20business%20is%20what%20lets%20you%20respond%20on%20a%20considered%20basis%20rather%20than%20reacting%20to%20whichever%20step%20the%20regulator%20takes%20first.%0A%0Ahttps%3A%2F%2Fwww.astrislaw.com%2Farticle%2Faccc-infringement-notices-vs-court-proceedings "Share on Email") This article is for general information purposes only and does not constitute legal advice and should not be relied on as such. 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