Hoyt's Food Fined for Alleged False and Misleading Representations
Tuesday 28 March 2017 @ 9.57 a.m. | Trade & Commerce
Hoyt Food Manufacturing Industries Pty Limited (Hoyt’s Food) has paid a penalty of $10,800 following the issue of an Infringement Notice by the Australian Competition and Consumer Commission (ACCC). Hoyt’s Food is a distributor of oregano and supplies to major retailers across Australia.
Background
The ACCC initiated an investigation into a number of products labelled as “Oregano” following a complaint from the consumer advocate group Choice, which included test reports suggesting the products were not 100% oregano. In April 2016, Choice tested 12 oregano samples and found only five of them were 100% oregano.
Issuing of the Infringement Notice
The ACCC issued the Infringement Notice because it had reasonable grounds to believe that Hoyt’s Food had made false or misleading representations in contravention of the Australian Consumer Law (ACL) [Sch 2 to the Competition and Consumer Act 2010 (Cth)], after it tested the composition of a sample from a batch of the 25g net variety of “Hoyt’s Oregano Leaves rubbed”.
The ACCC considered that by including the statements “Oregano Leaves” and “Oregano has a strong aromatic camphor like scent” on product packaging, Hoyt’s Food misrepresented that its oregano product was only oregano, except for trace ingredients, when testing commissioned by the ACCC indicated that the product contained approximately fifty percent olive leaf.
Comment from the ACCC
ACCC Commissioner Sarah Court said of the latest action:
“Suppliers of food products must ensure the accuracy of representations about the ingredients on labelling and any other packaging. Consumers use labelling on food products to make their purchasing decisions and are entitled to expect accurate labelling.”
Corrective action taken by Hoyt’s Food
Upon being notified by the ACCC of its concerns, Hoyt’s Food took steps to change its supply arrangements and indicated it would test its oregano products in the future. The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
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Sources:
Hoyt's Food pays $10,800 penalty for alleged false and misleading 'Oregano' representations - ACCC Media Release MR 23/17
Oregano supplier slapped with $11k fine by ACCC - Choice
