Natural Products of Australia Pty Ltd (Natural Instinct) is a manufacturer, wholesaler and distributor of a hair and skin care products, and household cleaning products.
Natural Instinct has acknowledged that it may have breached sections 52, 53(a), 55 and 65D of the Trade Practices Act 1974 (the Act) in the labelling of some of its products and in brochures distributed by Natural Instinct.
In particular, until on or about 30 June 2008:
Natural Instinct did not include sodium laureth sulphate (plant derived), cocamide DEA, cetrimonium chloride and citric acid as ingredients on the labels of some of its products, as required by the Trade Practices (Consumer Product Information Standards) (Cosmetic) Regulations 1991 (the Standard).
Natural Instinct did not list ingredients in the order required by the Standard.
Natural Instinct did not correctly name certain chemicals and ingredients, as required by the Standard.
The ACCC also expressed concern that statements by Natural Instinct that its products are “made with/from 100% pure oils and certified organic herbs” may be misleading or deceptive because they imply that the products contain significant amounts of herbs and oils, when certain products only contain 0.2% to 0.6% of herbs and oils.
The ACCC considers that this conduct may breach sections 52, 53(a) and 55 of the Act. While Natural Instinct does not admit that this conduct breaches the Act, it has amended the representations to state that the products “contain” pure essential oils and organic herbs.
Under the court enforceable undertaking Natural Instinct has agreed to place corrective notices; cease the contravening conduct; provide refunds to affected customers; and to implement a Trade Practices Compliance Program.
