The federal government has released plans to establish a mandatory industry code around baby formula advertising in Australia.

The new code aims to protect parents and carers from being "preyed on" by baby formula manufacturers using "shady" and "irresponsible" marketing tactics, according to the Australian Associated Press.

It would replace the voluntary and self-regulatory Marketing in Australia of Infant Formulas (MAIF) agreement. 

In a submission to the Australian Consumer and Competition Commission (ACCC), the Department of Health said the current agreement carries no penalties for breaches. 

The department also said the agreement had limited ability to regulate digital marketing practices and did not extend beyond products advertised to children over 12 months old.

"Effective regulation is essential to protecting and promoting breastfeeding, which in turn supports public health outcomes," a spokesperson said.

'Shady marketing campaigns'

Public health groups have welcomed the move, which aims to protect children's health and prevent parent confusion.

Australian Medical Association president Danielle McMullen said the current code has allowed manufacturers and retailers to irresponsibly market their products.

"It's not uncommon for new parents to experience some anxiety about infant feeding, and these shady marketing campaigns prey on this anxiety by promoting their products at a time of potential vulnerability for many parents," Dr McMullen said.

"Despite being unnecessary for children and unhealthy, we have seen 'toddler milks' deceptively advertised as beneficial — this a milk myth that must be exposed."

Current agreement 'ineffective'

The Public Health Association of Australia said the current voluntary agreement is ineffective, unenforceable and limited in scope.

"Infant formula manufacturers worldwide have a history of unethically promoting their products, putting profits before baby health," association vice-president Kathryn Backholer said.

"This marketing is designed to influence parents and caregivers and can ultimately cloud their judgement when they are trying to make the best decisions for their babies and toddlers," Professor Backholer said.

The consumer watchdog denied a proposal in September by the peak body representing infant formula manufacturers, the Infant Nutrition Counci, to extend the voluntary agreement by five years.

While the new code is established, the government has asked the ACCC to reauthorise the current code for another two years with mandatory controls.

Monitoring and compliance checks around social media promotion and influencing formula products will be boosted during the transition period. 

AAP