The distributor of 'Double D' eucalyptus oil has paid a $6,600 infringement notice for falsely labelling imported oil as made in Australia.

"Consumers should be able to rely on the accuracy of labels, especially when they are prepared to pay a premium for products made in Australia," Australian Competition and Consumer Commission, chairman Rod Sims said.

On 21 February 2012, the ACCC issued the notice because it had reasonable grounds to believe that Club Trading & Distribution had falsely claimed that the eucalyptus oil in its 100ml bottles was made in Australia.

Club Trading & Distribution was unable to substantiate the made in Australia claim that appeared on the label. The ACCC had reasonable grounds to believe that during much of 2011 the oil was actually imported from China and southern Africa.

"Australian grown eucalyptus oil is readily available to distributors and primary producers are harmed when imported oil is falsely labelled as being made in Australia," Mr Sims said.

"Traders making made in Australia claims need to ensure that their labels are kept up to date to reflect changes in sources of supply.

"Failure to do so may lead to a contravention of the Competition and Consumer Act, infringement notices or court action," Mr Sims said.

Information about the ACCC's powers to issue infringement, substantiation and public warning notices is available on the ACCC website, www.accc.gov.au/notices