Paul's 'Local Milk' campaign illegal

Pauls Limited has admitted that an extensive Northern Territory advertising campaign by Pauls was likely to mislead consumers.

Following action brought by the Australian Competition and Consumer Commission in the Federal Court, in Darwin, Pauls, has been ordered not to promote its white milk products Fresh Trim Milk, Fresh Slim Milk and Fresh Milk as 'local milk' or make other claims that were likely to mislead or deceive consumers.

Pauls admitted to the Court that a Pauls' advertising campaign in late 1998 and early 1999 contained a number of statements in relation to Pauls' Fresh Trim Milk, Fresh Slim Milk and Fresh Milk that were likely to mislead or deceive consumers in the Northern Territory.

"It is illegal for advertising to create a false or misleading impression in the minds of consumers", ACCC Chairman, Professor Allan Fels, said today. "Pauls promoted its NT white milk products as 'local' milk when raw milk used in these products was from the Malanda Dairy in Queensland. The campaign was extensive and involved television and print advertisements".

"The ACCC stepped in to ensure that consumers receive accurate information on which to base their purchase of milk products.

"Competitors in the market place can also be damaged by representations that are likely to mislead or deceive consumers".
The ACCC obtained a temporary injunction against Pauls in March 1999 to stop the Pauls' 'local milk' advertising campaign. Pauls has now agreed to a permanent Court order against the 'local milk' advertising campaign, and has admitted that the campaign contravened the Trade Practices Act 1974 in a number of different ways.

Pauls Limited will also pay $40,000 towards the ACCC's legal costs.

Pauls' contraventions of the Act included representations that:

• the Pauls milk products are 'local' when in fact most of the raw milk used in these products was from the Malanda Dairy in Queensland.
• "Pauls takes all the milk from dairy farms in the Territory", when in fact there is only one commercial dairy in the Northern Territory; and
• some of that milk was packaged by Pauls for retail sale under the Malanda and Rowlands labels; and
• "Pauls is the only dairy which employs over 140 local people" and that "[Pauls' Fresh Milk] employs over 150 Territorians", when the persons so employed numbered substantially less than 140.

Pauls has also undertaken not to claim its fresh milk products as "the Territory's Own"; and not to represent that Pauls has produced "Pauls' Fresh Milk" in the Northern Territory before 31 October 1985.