Labels are used by businesses to convey important information about most goods such as foods, clothing and packaged goods. Sometimes this information is required by law or by industry-specific regulation such as the Food Standards Code. Labels are also used voluntarily by businesses to promote special features of the goods or when the consumer can't see the content of packaged goods.
Whether labels are required by law, or are voluntary, they must accurately reflect the product contents because consumers depend on this information to make informed and better choices.
Food Standards Australia New Zealand (FSANZ) is the Australian Government regulatory authority that develops, implements and reviews food labelling requirements for food sold or prepared for sale in Australia and New Zealand, and food imported into Australia and New Zealand.
The Trade Practices Act and the various state, territory and New Zealand fair trading acts apply to misrepresentations about all food products whether they be false representations, misleading or deceptive conduct or conduct likely to mislead or deceive.
The following example demonstrates the importance of correct information on food labels to consumers who manage diabetes.
A manufacturer of a fruit ice confection product labelled their product with the claim ‘No Added Sugar’ and indicated in the nutritional information panel that the sugar content was zero. The product actually contained a significant amount of naturally occurring sugar.
A Memorandum of Understanding (MOU) to facilitate cooperation and coordination between the ACCC and Food Standards Australia New Zealand (FSANZ) was signed 29 April 2004 (see below).
The MOU provides a framework for cooperation when issues of responsibility overlap and more importantly will allow both agencies to take advantage of opportunities to assist each other with food regulatory and trade practices compliance activities.
