ACCC institutes proceedings against Australian Co-operative Foods Limited over alleged falsely labelled cheese

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court against Australian Co-operative Foods Limited,  which trades as Dairy Farmers, for alleged false, misleading and deceptive conduct in the packaging of certain cheese products in contravention of the Trade Practices Act 1974.

The ACCC alleges that between 6 February 2008 and 19 March 2008 ACF supplied to wholesalers and retailers Romano style cheese packaged and labelled as Parmesan style cheese and, as such, misrepresented the type of cheese packaged and its nutritional attributes. The brands of cheese which are the subject of the ACCC's allegations are the "Mil Lel" and "Westacre" brands.

The ACCC is seeking:

• declarations that ACF engaged in conduct in contravention of sections 52, 53(a) and 55 of the Act*
• an injunction restraining ACF from engaging in similar conduct in future
• orders that ACF write to its customers and cause to be published notices in newspapers and on its website advising of the alleged misrepresentations
• an order that ACF implement a trade practices compliance program, and
• an order that ACF pay the costs of the proceeding.

The matter has been filed in the Federal Court's Fast Track List and is listed for a scheduling conference in Melbourne on 1 September 2008.

Background

*Sections 52 and 53(a) of the Act respectively prohibit a company in trade or commerce in connection with the supply or possible supply of goods from:

• engaging in misleading or deceptive conduct, and
• falsely representing a good is of a particular standard, quality, value, grade or composition.

Section 55 of the Act prohibits a person in trade or commerce from engaging in conduct that is liable to mislead the public as to the nature, the manufacturing process or the characteristics of any goods.