ACCC warns fruit juice industry on misleading claims
Misleading claims in the fruit juice industry about alleged nutritional, health and therapeutic benefits of certain ingredients, will be targeted by the Australian Competition and Consumer Commission, ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC wants to see an overall improvement in trade practices law compliance at every level of the industry - from packaged juices in supermarkets and convenience stores through to the exotic juice bar blends.
"The ACCC is particularly concerned about the growing use of health claims widely used to promote fruit juice, smoothie and related juice products being sold in juice bars.
"These claims about certain ingredients may not exist, cannot be substantiated or, in fact, may adversely impact on a consumer or their diet".
The industry is valued at more than $1 billion, of which the juice bar sector contributes around 15 per cent and is reported as having a national turnover of $150 million. That amount is expected to double in 2005.
"Clearly consumers have embraced the juice bar concept but the ACCC is concerned that profits shouldn't include benefits from misleading and deceptive conduct.
"The ACCC has written to juice bar franchisors to advise them of their obligations under the Act and to alert them and their franchisees to the ACCC's scrutiny of industry claims".
In April 2004 the ACCC and Food Standards Australia New Zealand (FSANZ) signed a Memorandum of Understanding to facilitate cooperation and coordination between the two agencies.
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.
In March 2005 an ACCC Commissioner, Mr John Martin, addressed fruit juice industry participants attending the Australian Fruit Juice Association Annual Meeting as part of the 57th Annual Conference of the Australian Citrus Growers. The address is titled ACCC - Trade Practices and the Fruit Juice Industry.
