Basfoods (Aust) Pty Ltd - s.87B undertaking

Between about March 2007 and at least March 2009, Basfoods (Aust) Pty Ltd represented via the product’s labelling and in its dealings with its customers – who were mostly delicatessens, small food retailers and restaurants – that edible oil labelled “Aigeon Oil 100% Extra Virgin Olive Oil” (Aigeon) was extra virgin olive oil (Extra Virgin Olive Oil Representation).

The ACCC considers that Basfoods has engaged in false, misleading and deceptive conduct by making the Extra Virgin Olive Oil Representation because the product was not, in fact, extra virgin olive oil.

Basfoods admits that, by making the Extra Virgin Olive Oil Representation, it made representations about Aigeon that were false, misleading and deceptive in contravention of sections 52 and 53(a) of the Trade Practices Act 1974.

Basfoods has provided court enforceable undertakings to the ACCC that, for a period of three years, it will:

• not represent that a cooking oil is “extra virgin olive oil”, “virgin olive oil” or “olive oil” when it is not;
• prior to supplying a batch of edible oil in Australia labelled “olive oil”, “virgin olive oil” or “extra virgin olive oil – 
• require the producer or its supplier of the edible oil to provide a certificate of analysis, or equivalent document, demonstrating compliance of a sample from the applicable batch with the International Olive Council’s (IOC) Trade Standard Applying to Olive Oils and Olive-Pomace Oils (IOC Standard) or other equivalent or recognised standard; and
• commission a NATA or IOC accredited laboratory within Australia to test a sample from the applicable batch against the IOC Standard or other equivalent or recognised standard;
• send a letter to each person Basfoods supplied Aigeon to between March 2007 and April 2009 informing them of Basfoods’ conduct; and
• implement a Trade Practices Compliance Program.