New labels to correct Country of Origin claims

YBD Pty Ltd will change its labelling on a number of its food products to remove the words 'Product of Australia' and replace them with the words 'Australian Made Australian Owned', after concern was expressed by the Australian Competition and Consumer Commission.

YBD is a Victorian-based manufacturer of muesli slices and other related products. Many of YBD products were labelled with the words 'Product of Australia' and, in finer print, 'Made from Local and Imported Ingredients'.

"The imported ingredients were apricots, sultanas and coconut. The ACCC believes that these constitute significant ingredients", ACCC Chairman, Professor Allan Fels, said today.

"The provisions of the Trade Practices Act 1974, define a set of defences, or safe harbours, for goods that pass certain tests. To be able to use the defence for the premium claim that a product is a 'Product of Australia', each significant ingredient of the product must be sourced from Australia, and all, or virtually all, processes involved in the production or manufacture of the product must occur in Australia.

"While the term 'significant ingredient' is not defined in the Act, the ACCC believes that it should not be determined on a percentage basis, but rather whether the ingredient constitutes an essential defining element of the product.

"The ACCC believes that a consumer buying these products would be misled by the representation 'Product of Australia' when significant ingredients, such as the fruit used to describe the flavour of the product, are not produced in Australia. A qualified claim such as 'Made in Australia from Local and Imported Ingredients' would be more appropriate in these circumstances as it would not need to rely on the defences in the Act.

"Many consumers buy particular brands specifically because they want Australian products. The ACCC is concerned to ensure that consumers can be confident that 'Product of Australia' claims are legitimate". YBD has provided court enforceable undertakings to the ACCC, whereby YBD has undertaken to: change the labelling of products in its 'Nana Diver's Classic Baked Muesli Slice' range, to remove the words 'Product of Australia'; change the labelling of other products in YBD's range, such as 'Moose Bars' and 'Round Cakes', which carry the wording 'Product of Australia' but which contain imported ingredients; and implement a trade practices compliance program and complaints handling system.