ss. 52, 53(a), 55 misleading labels on cordial products
22 March 2002: The ACCC instituted proceedings in the Federal Court, Melbourne, against Cadbury Schweppes, the manufacturer of Cottee's cordial products, alleging false, misleading and deceptive conduct in its labelling of Cottee's banana mango flavoured cordial and apple kiwi flavoured cordial concentrate.
The ACCC sought an injunction restraining Cadbury Schweppes from supplying these and other drink products labelled with pictures of real fruit when such products are not made from and/or do not contain the fruit pictured. It is also seeking court orders requiring Cadbury Schweppes to issue in-store public disclosure notices and corrective advertising in newspapers and to implement a corporate compliance program.
18–19 June 2003: The trial took place with judgment being reserved.
30 April 2004: The court found that the labelling on these products would convey to some reasonable potential purchasers the impression of real bananas, real mangoes and some extract of real kiwi fruit and ruled that the most important element in conveying that impression is the pictorial representation of these fruits on the labels.
The court judgment rejected Cadbury Schweppes’s contention that the use of the phrase ‘flavoured cordial’ was sufficient to overcome any effect the depiction of real fruit might have.
Noting Cadbury Schweppes no longer manufactures or supplies the banana mango flavoured cordial and has relabelled the apple kiwi flavoured cordial concentrate, the court declined to make injunctions restraining future labelling sought by the ACCC.
Cadbury Schweppes was ordered to pay 70 per cent of the ACCC's costs.
