ss. 52, 53(a), 53(eb). Alleged misleading or deceptive conduct, false or misleading representations
28 November 2003: Proceedings instituted in the Federal Court, Sydney, alleging misleading country of origin labelling of a honey drink, the ‘Ixon Club Propolis Drink’.
16 December 2003: Justice Wilcox granted the ACCC leave to effect service outside the Commonwealth on Ixon in Japan.
The next directions hearing will be on 26 October 2004 in the Federal Court, Sydney.
7 October 2004: A directions hearing was held and further orders made regarding the timetable. A further directions hearing has been set down for 1 March 2005.
18 March 2005: Further orders regarding timetable made. A further directions hearing was set for 5 May and 16 June 2005.
28 August 2005: By consent of both parties, the court declared the companies had breached the Trade Practices Act 1974 by representing the honey drink:
contained 39 per cent Leatherwood honey – when it contained only about 2 per cent Leatherwood honey, and about 38 per cent Chinese honey
contained 28 per cent Leatherwood propolis – when it contained none
had its main ingredients from Tasmania – when the main ingredients were from China, and
was manufactured and bottled in Australia – when manufacturing and bottling took place in China.
The court declared the conduct contravened s. 52 of the Act, which provides a general prohibition against misleading or deceptive conduct, and also contravened ss. 53(a) and 53(eb) which prohibit false representations concerning the quality, composition and country of origin of goods.
Consent injunctions were granted restraining the companies from representing that any Ixon Club product is from Australia unless the product is wholly or substantially produced or manufactured in Australia and comprises wholly or substantially Australian ingredients.
Ixon has also agreed to inform current customers of the Ixon Club, who were members between August 2000 and September 2002, of the declarations and injunctions ordered by the Court.
