Federal Court imposes penalty for misleading place of origin representations

A Federal Court decision has protected consumers from misleading place of origin representations following action by the Australian Competition and Consumer Commission.

Judge Bernard Murphy has imposed a $50,000 penalty on a Victorian butcher, Kingsland Meatworks & Cellars Pty Ltd, after finding that it had made false or misleading representations that the meat offered for sale through its Brighton shop was from King Island, when in fact very little or none of the meat was from King Island.

“Consumers deserve to be properly informed about the origin of the food and produce they purchase,” ACCC Chairman Rod Sims said.

“Consumers are misled when retailers falsely associate themselves with the reputation of particular regions.”

Justice Murphy found that King Island Meatworks & Cellars Pty Ltd had at various times from as early as July 2008 used a logo which contained the words ‘King Island’, had used an internet domain name containing the words kingislandmeats.com.au, had referred to King Island on its website, had displayed signs outside its retail premises in Brighton and had published newspaper advertisements referring to King Island.

Justice Murphy found that in its references to King Island, the company represented that the meat being offered for sale through its butchery, or at least a significant proportion of it, was grown on or raised, or was otherwise from King Island when that was not the case.

“This court case is a lesson to those retailers that might be tempted to engage in similar misleading conduct – do so and you may find yourself in court,” Mr Sims said.

Justice Murphy also found that the company’s Managing Director, Mr Alexander Mastromanno, was knowingly concerned in his company’s contraventions.  In addition to the $50,000 penalty imposed on the company, Justice Murphy imposed a three year injunction on both the company and Mr Mastromanno.