After an investigation by the Australian Competition and Consumer Commission, multinational consumer goods manufacturer Reckitt Benckiser will remedy false Made in Australia labelling claims made on one of its Mortein insect control products.
The claim was located on the rear of the external packaging of a nationally distributed insecticide diffuser, the Mortein NaturGard Automatic Indoor Insect Control System. However, it was later discovered that only one of the product's two components was produced within Australia.
The ACCC was concerned the labelling may have implications under section 52 of the Trade Practices Act 1974 which prohibits misleading conduct, and section 53(eb) which prohibits false representations regarding the place of origin of goods.
Reckitt Benckiser reacted promptly, admitting that the Made in Australia claims were false. It has undertaken internal review and amendment of its procedures, training to improve its existing trade practices law compliance measures, and has relabelled the product, removing the offending claim.
Under an administrative undertaking, Reckitt Benckiser has agreed:
- not to engage in similar conduct in future
- to place a corrective notice in a prominent position on its website setting out the detail of the conduct and providing an accurate reference to the country of origin where the Mortein NaturGard product is produced, for three months. and
- to provide details to the ACCC of any complaints received by Reckitt Benckiser which may amount to misleading and deceptive conduct regarding the country of origin of its products, for two years.
"This matter is clear demonstration of where a prompt and cooperative response by a company to address ACCC concerns has lead to a timely and good outcome for all," ACCC chairman, Graeme Samuel, said today. "It also shows the need for companies to regularly review their compliance systems to ensure the systems are working well.
"This is a reminder for all business to ensure the country of origin claims on products can be justified. Labels must be correct, so that consumers who wish to buy Australian Made are not misled."