Misleading and deceptive advertising
The Australian Competition and Consumer Commission (ACCC) has sent a warning to the fruit juice and juice bar industry about health claims used to promote their products. Berri, Australia’s largest juice company, became the first victim of the ACCC crackdown.
The labelling on Berri’s SuperJuice range was found to be misleading. The amount of spirilina, wheat grass and barley grass in the product was insufficient to justify Berri’s claim of a “shot” of grass in each product. The ACCC ruled the word “shot” implied the standard shot measurement of 30 millilitres or 2.4 grams of green matter. The product was found to have less than half that amount.
The ACCC administers the Trade Practices Act (Cth) 1974, which provides consumers protection against unfair trade practices. The Trade Practice Act or TPA as it is commonly referred to, prohibits:
- misleading and deceptive conduct
- unconscionable conduct; and
- the making of false representations in relation to the sale of goods and services.
The concepts of misleading and deceptive are quite broad and are designed to protect consumers from being misled or deceived by marketing campaigns and unfounded claims. Conduct will be misleading or deceptive if it is likely to deceive the particular consumers who are the intended target of the claims or conduct.
In the case of Berri juices, the test would be interpreted as: would people drinking the SuperJuice range believe the product contained a shot (30 ml) of grass? The ACCC answered in the affirmative and Berri was found to have breached the Trade Practices Act.
As part of the court order, Berri will change the labelling on its products to more accurately reflect their ingredients. This includes giving an accurate indication of the amount of green matter and herbal supplements contained in the juice product in milligrams and volume percentage.
More Information
From the LIV Bookshop
Outline of Trade Practices and Consumer Protection Law (2nd Edition), Hurley & Wiffen, $60.50
Useful Web links
The ACCC has information on consumer rights at www.accc.gov.au
Consumer Affairs Victoria has information on consumer protection at www.consumer.vic.gov.au
Disclaimer:
The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Brendan Kelly or Sam Marash of Kenna Teasdale Lawyers, Melbourne. | 
