Rice packer Riviana Foods Pty Ltd will publicly apologise to customers for misrepresenting that some of its Mahatma brand white long grain rice was Australian-grown when it was imported from Thailand.
The rice was in 2 kilo and 10 kilo packages, distributed between late March and the end of May 1997. The apology follows Australian Competition and Consumer action.
"The companys Australian grown long grain rice is usually sourced from the Ricegrowers Co-operative in Leeton, NSW," ACCC Chairman, Professor Allan Fels, said today. "But the 1996 Australian rice crop was severely effected by drought conditions, with lower yields.
"To supplement supply, Riviana imported white long grain Thai rice in September 1996. In March 1997, Riviana exhausted its supplies of Mahatma brand packaging labelled 'Packed in Australia from imported rice' and began labelling stating 'Product of Australia' during the shortfall period.
"Riviana's apology, and its corrective action, addresses the ACCC's concerns that when consumers buy 'Product of Australia' goods they expect the goods will be Australian made or grown and not imported.
"The ACCC's investigations confirmed that Riviana had engaged in misleading and deceptive conduct in breach of the Trade Practices Act, when it incorrectly repackaged the bulk rice.
"During the three months from late March to the end of May 1997, consumers were led to believe that they were purchasing a product which was grown in Australia."
When the ACCC assessed the matter, it accepted that as soon as Riviana became aware that its conduct breached the Act, it took quick and extensive remedial action to either remove or relabel incorrectly labelled packets of Mahatma brand white long grain rice in retail outlets and provide refunds to consumers where required.
"Further, the ACCC accepted that Riviana did not benefit financially or competitively from the conduct, and it provided prompt and extensive cooperation with the ACCC. Riviana has offered the ACCC enforceable undertakings which include the following:
Riviana making a public apology through major metropolitan newspapers to its customers for engaging in misleading and deceptive conduct in respect of the country of origin of goods; undertaking to publish an information page in food industry magazines to assist food industry participants in their awareness of the provisions of the Act, especially in relation to the duty of care imposed on company directors under the Act; and the implementation of an ACCC approved corporate compliance program for Riviana staff and management.
"Also Riviana has, of its own accord, compiled a product label register to ensure that a repeat of the mislabelling does not occur. This management tool will be used to keep track of the various labels that Riviana deals with and ensure that they correspond with the provisions of the Act and other relevant food labelling legislation.
"Riviana's extensive corrective action influenced the ACCC's decision to settle the matter administratively rather than prosecuting Riviana and the individuals involved.
"This matter reinforces the ACCC's attitude towards companies that make false or misleading representations about food products," Professor Fels said. "Food manufacturers should ensure that they do not make misleading claims about the country of origin goods or the composition of goods they process".
For further information about this media release: Professor Allan Fels, Chairman, (03) 9290 1812 Ms Lin Enright, Director, Public Relations (02) 6264 2808 (w).
