Food Law Updates (disclaimers)
by Joe Lederman and John Gao © Lawmedia Pty Ltd, May 2008
FoodLegal
Australian Food Lawyers and Consultants
Recent developments in food law including:
- The latest on the WA Food Bill
- Update on ACCC v Arnott’s
- ACCC takes action against a fruit juice manufacturer
- MoU signed between two government agencies
- Consumer Affairs Victoria issues public warning on certain beverage product
WA Food Bill Developments
On 15 May 2008, the Western Australian Food Bill 2005 was read a third time in the Legislative Council (Upper House) of the Western Australian parliament. The Bill was passed with amendments and the amendments will now need to be passed in the Legislative Assembly before the Bill can become law.
The third reading in the Legislative Council brings the adoption of a Food Act in Western Australia a step closer since the introduction of the Food Bill into the Legislative Assembly on 23 November 2005.
ACCC v Arnott’s
On 29 April 2008, Consent Orders were entered in the Federal Court of Australia in the dispute between the ACCC and Arnott’s Biscuits Ltd over representations made in relation to the Arnott’s Snack Right Fruit Pillows and Arnott’s Snack Right Fruit Slice product ranges.
Arnott’s conceded that each of the relevant products represented to consumers that the particular product contained a predominant amount of each fruit ingredient referred to in the particular name of the product (eg apple and blackcurrant in the “Snack Right Apple and Blackcurrant Fruit Pillow”) and represented that each product contained a “not insubstantial amount” of named ingredients. Arnott’s also conceded that such representations were “false, misleading or deceptive” and thus engaged in conduct that contravened Sections 52, 53 and 55 of the Trade Practices Act.
Arnott’s was ordered to pay the ACCC’s costs of $20,000.
However, we note that later developments in Federal Court case law provide new precedent in this area of law. Please refer to the article in this issue of the FoodLegal Bulletin.
ACCC v Harvey Fresh
On 13 May 2008, Harvey Fresh (1994) Ltd entered into Undertakings with the ACCC in relation to its 100% juice product. Harvey Fresh had represented that its Apple and Blackcurrant fruit juice product as 100% juice when in fact the ingredients were: “Australian Apple Concentrate, Blackcurrant Flavour, Grape Skin Extract, Colour 466”. We note that the product did not in fact contain any blackcurrant juice.
As part of its Undertakings, Harvey Fresh has conceded that it had made misleading representations and will be recalling its product from supermarket shelves.
Consumer Affairs Victoria signs MoU with the ACCC
On 19 May 2008, Consumer Affairs Victoria and the ACCC announced the signing of a Memorandum of Understanding between the two government agencies.
Although no details have been released to the public in relation to the terms of the MoU, a media release from Consumer Affairs Victoria points to greater cooperation between the two government agencies, agreeing “to consult each other on recent judgements, current law reform, policy issues, media releases, joint publications and stakeholder groups”. “The MOU also enables the agencies to work together on joint strategies, taskforces and investigations.”
However, no details have been released about whether or not there will be any enforcement cooperation or delegation of enforcement powers to streamline the national consumer protection regime and to avoid overlaps.
Consumer Affairs Victoria issues warning over alcoholic energy drinks
Consumer Affairs Victoria on 16 May 2008 issued a media release warning consumers of the dangers of alcoholic energy drinks.
Although there is currently no prohibition for such products under the Australia New Zealand Food Standards Code, Consumer Affairs Victoria has indicated that it has issued the public warning on the basis that the products “may adversely affect the interest[s] of persons who have acquired them”. Consumer Affairs Victoria has also indicated that it is further investigating potential misleading or deceptive conduct in the marketing of alcoholic energy drinks.