The Proof is in the Carton: ACCC Reinforces Labelling Standards for Agribusiness

It's been a busy few weeks for the ACCC, and two recent investigations are well worth having on your radar! Both involve misleading labelling in the agriculture space, and they're a timely reminder that the label on the carton needs to match the product inside of it.

Lactalis Fined Over "Fresh" Milk Claims

Dairy giant Lactalis Australia has paid $59,400 in penalties after the ACCC issued three infringement notices over two of its milk products; Golden North 'Country Fresh' and Ferguson Valley 'WA DAIRY FRESH'. Both were labelled as "fresh" milk, but the ACCC found they actually contained substantial amounts of powdered, reconstituted ingredients. Lactalis has since removed the word "fresh" from those labels. As ACCC Deputy Chair Mick Keogh put it, consumers simply "would not expect fresh milk to contain substantial amounts of powdered, reconstituted ingredients".

Doreen Egg Penalised for False Free-Range Claims

Small Victorian egg producer Doreen Egg Aust paid $39,600 in penalties after the ACCC issued two infringement notices for selling eggs labelled as "free range" when the hens did not have access to an outdoor range. Over 8,600 cartons of mislabelled eggs were sold through wholesalers, small retailers, and direct farm-gate sales. Doreen Egg has since committed to updating its packaging, reviewing its compliance processes, and conducting staff training.

Key Takeaways

1. Labels must be accurate. If your product’s label says "fresh" or "free range", your production practices need to back that up.
2. The size of your operations does not matter. The ACCC will pursue both large multinationals and small producers.
3. Review compliance practices. Now is a great time to audit your labelling and ensure it aligns with the Australian Consumer Law and any applicable industry standards.
4. Get on the front foot. Improving staff training and traceability systems can help you avoid penalties and protect your brand.

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