In orders handed down yesterday, Justice Lindgren of the Federal Court declared that Woolworths Ltd had in respect of advertisements during the period 22 February 2001 and 1 March 2001 engaged in misleading or deceptive conduct in breach of the Trade Practices Act 1974. He also declared that Woolworths had made false or misleading representations in relation to the origin of cattle.
The orders follow the court's finding on 12 August 2002 that advertisements, entitled 'Beefing Up the Local Economy', published by Woolworths misled consumers as to beef sold in some its regional supermarkets in NSW being sourced from cattle in the North West NSW and New England regions.
In the orders, Justice Lindgren declared that Woolworth's had made false or misleading representations in respect of the place of origin of cattle ultimately sold as beef in some of its regional supermarkets in contravention of Section 53(eb). He also declared that Woolworths had engaged in misleading or deceptive conduct in contravention of Section 52 in relation to this beef and also in relation to grain used to feed the cattle
Justice Lindgren declined to order Woolworths to publish corrective advertisements, as sought by the ACCC. He concluded that the offending advertisements were published 18 months ago and that the effect of the misleading aspects of the advertisements had since diminished.
Justice Lindgren also declined to order injunctions against Woolworths, as sought by the ACCC. He was satisfied that Woolworths did not intend to repeat the advertisements particularly because they were in relation to a one-off event, the refurbishment of the Cargill abattoir at Tamworth.
"While the ACCC is disappointed at the court's decision in relation to corrective advertisements and injunctions, it welcomes the court's declarations in this matter", ACCC Chairman, Professor Allan Fels, said today.
"The court's declarations serve to demonstrate that the making of false representations in relation to the place of origin of goods will not be tolerated by businesses seeking to market their goods and services to consumers. Such misleading conduct should not be engaged in to misrepresent the truth when drumming up support for the local economy, particularly in rural and regional areas".