Regulatory powers, tools and intelligence

The Pubs Code Adjudicator (PCA) uses a range of legal powers and tools to ensure that regulated drinks companies comply with the Pubs Code. PCA also works collaboratively with pub companies and others to address compliance issues and promote best practice.

The work of PCA is extensive. This includes raising awareness of tenants’ Code rights through channels such as social media and industry events and publications. PCA also gathers information about how the regulation works in practice through research, surveys and participation.

The following explains the legal powers of the PCA, the obligations of pub companies to monitor and report their own compliance, and the use of knowledge to understand PCA compliance issues.

1. PCA legal powers

The statutory powers of the PCA include:

• Giving advice and guidance

• Investigate suspected violations of the law

• Report to the Secretary of State if a pub company engages in unfair business practices designed to circumvent the liquor laws and is detrimental to incarcerated tenants.

The PCA can also do anything to help them carry out their duties.

1.1 Giving advice and guidance

The PCA can advise captive tenants and regulated pub companies and any organizations representing their interests on any matter relating to the Pub Code.

Advice can be given, for example, when the PCA wants to explain its thinking to the industry in order to help them approach an issue.

The PCA may publish guidelines on:

• Applying pubs code

• Steps that pub companies should take to comply with the regulation

• The practices and procedures that the PCA intends to use to carry out its functions

• Any other matter related to the law.

While the PCA is required by law to consult with anyone it considers appropriate before publishing guidance, the PCA must also consider published guidance in carrying out its duties. This includes investigating code violations and taking enforcement action as a result. The PCA (and any appointed arbitrator) must consider this when resolving code disputes.

Pub companies must always comply with the pub code. The statutory directive does not change the law. Drinks companies must follow the guidelines to ensure clarity and consistency of approach, and with very good reason unless they can demonstrate this in evidence. If the guidance is not followed, the PCA will expect the drinks company to justify and demonstrate why it was appropriate in the circumstances and that the approach taken complied with the Code. Where appropriate, guidance will clarify where pub companies need to take steps to comply with the Pubs Code.

1.2 Investigate suspected liquor violations

The PCA can investigate where they suspect a drinks company has not complied with the pub rules. As a result of an investigation, the PCA can impose fines, publish information and/or make recommendations (and investigate if the drinks company does not follow the recommendations).

More information about the PCA’s breach of pub rules approach can be found here.

1.3 Report an unfair business practice designed to circumvent the pub code

PCA The PCA must report to the Secretary of State if, in the PCA’s opinion, the drinks company is engaging in unfair business practices designed to circumvent the regulation. The PCA does not have the legal authority to require the beverage company to provide evidence to prove that a report is necessary.

More information can be found in the PCA fact sheet on Code Avoidance.

2. Pub company compliance monitoring and reporting

The Pub Act imposes legal obligations on pub companies to ensure compliance by appointing a compliance officer and submitting an annual report. The PCA also requires companies that violate the pub code to self-report.

2.1 Code Compliance Officer

The Pub Code requires pub companies to appoint a Code Compliance Officer (CCO). This is an employee of the beverage company whose job it is to ensure that their beverage company complies with the law. The PCA has an important relationship with the CCO, and they are the point of contact for the PCA and the captive tenants.

The drinks company has legal obligations under the Act, which include ensuring that the CCO is independent within the pub, complies with the Police Code and can interact effectively with the PCA and tenants.

More information about the CCO role is available here.

2.2 Annual compliance report

The Pub Code requires liquor companies to submit an annual compliance report to the PCA by the end of March each year. It is the CCO who is responsible for ensuring that this happens.

The annual compliance report must verify violations reported to the PCA during the year through the self-reporting process and must not be the first notification of a violation. The report also includes other important information about the pub’s property and the rights enjoyed by tenants under the Act. Annual compliance reports are published on each of the pub companies’ websites.

2.3 Self-reporting violations

If a CCO discovers that their pub has breached the pub code, the PCA expects them to be notified as soon as possible. The CCO must complete a standard form (called a self-report) to provide information about the breach to the PCA.

The self-report ensures that the PCA is made aware of the beverage company’s awareness of the breach, how it occurred and its impact on tenants. The beverage company should inform tenants of the PCA’s actions to prevent reoccurrence and rectify issues. This should include the steps you have taken or intend to take to tell tenants about the breach and how to get more information if you are a victim.

Self-reporting violations helps the PCA be confident that a bar company can effectively monitor code compliance and take appropriate and timely action in response to violations. The PCA may consider this when deciding what, if any, further regulatory action is required.

The PCA office publishes a self-reported violation log on its website to share information with the industry about how the code works and how violations are handled. The record includes a description of the breach and other relevant information, such as actions taken in response.

3. Knowledge of bar code compliance

The PCA office receives and collects a wide range of information, which is used to determine the most appropriate actions to monitor compliance with the Pub Code.

Information can come from a number of sources, including:

• Tenants and others who contact the PCA office

• Industry events and stakeholder meetings

• Annual tenant survey

• Surveys of tenants who have gone through the market rent only process

• Other targeted studies on tenant experience

• Self-reported violations from bar companies

• Pub company annual compliance reports

• Arbitration

3.1 Information sent to PCA.

The PCA receives information from tenants and other liquor companies on how they comply with the Pub Code. This information helps the PCA build a picture of beverage company behavior and decide what action to take as a regulator.

When considering information, the PCA office may ask for supporting evidence, such as notes from discussions with the Business Development Manager that the tenant is required to provide under the Act, and any correspondence or emails. PCA cannot always tell them what they are doing with the information they receive, as it may hinder or advance the actions PCA is taking. Where possible, the PCA Office will publish information about regulatory actions on its website.

3.2 Complaints and disputes

If a tenant in jail believes that the liquor company has not followed the pub code and they are in trouble because of it, they can contact the liquor company’s code compliance officer to resolve this.

The PCA cannot represent individual tenants in making complaints to their pubs or resolving complaints. Disputes between tenants and pubs that cannot be resolved under the Pub Act are referred to the PCA for arbitration. There are strict time limits for making referrals. More information is available in the PCA data sheets here.

Following a referral, the PCA may appoint an external arbitrator to resolve the dispute. If this occurs, the PCA will request copies of arbitral awards and other documents to monitor the beverage company’s legal compliance and arbitration.