Misleading labelling penalties

With the new Health Claim labelling now coming into force for manufactured foods in Australia, recent news of a AUD $10800 fine to two of our major food companies, should be strong reminder to ensure label accuracy.

The two companies were fined by the Australian Competition and Consumer Commission (ACCC) for misleading use of the “school canteen approved” labelling.

Both companies had disclaimers on their product stating that they met the “amber” (or “select carefully”) school canteen criteria, but ACCC considered that these were small and not obvious enough to prevent consumers being misrepresented by the “school canteen approved” labelling.

A CHOICE report on the number of supermarket sold foods using canteen certifications and potentially misleading consumers, was the trigger for the ACCC action.

The ACCC had the option of taking the two companies to court but in this situation, a standard fine of $10800 was imposed instead.

ACCC Commissioner Sarah Court said; “The ACCC believes both companies were using logos to claim that these products were a healthy option for school canteens to supply to children, when they were not.”

Both companies are now adjusting the labels to reflect the requirements in the ACCC Infringement Notices.

Food companies need to ensure at all times that what is on the label is the truth and cannot be seen as misleading at any time. This is always important but with the new health Claims coming into effect, the need is even greater.

Ms Court said; “School canteen managers, parents and caregivers rely upon product packaging and labelling when choosing healthy snacks for children. The ACCC is currently examining consumer protection issues around ensuring that the health claims made by large businesses are accurate and will not mislead consumers.”