Lactalis Australia Pty Ltd has paid $59,400 in penalties after the ACCC issued it with three infringement notices for allegedly making false or misleading representations in the labelling of two of its milk products.
The ACCC alleges that Lactalis' Golden North 'Country Fresh' 2L milk and Ferguson Valley 'WA DAIRY FRESH' 2L milk were labelled as fresh milk, when each contained substantial amounts of powdered reconstituted ingredients.
Lactalis' products were identified in an ACCC investigation of the milk processing industry, which included obtaining information and reviewing the products of several major dairy processors and retailers.
The ACCC's investigation found that processors and retailers largely label their fresh milk products accurately.
However, the ACCC's investigation identified that Lactalis added substantial amounts of reconstituted skim milk and lactose to its Golden North 'Country Fresh' 2L milk. It also identified that Lactalis has added substantial amounts of reconstituted lactose to its Ferguson Valley 'WA DAIRY FRESH' 2L milk.
Lactalis removed the word 'fresh' from these product labels after the ACCC raised concerns about this labelling.
"Consumers should be able to trust product labels as accurate descriptions of the products they are buying, particularly for everyday groceries such as milk," ACCC Deputy Chair Mick Keogh said.
"We were very concerned that prominent 'fresh' claims on these products may have been misleading, as consumers would not expect fresh milk to contain substantial amounts of powdered, reconstituted ingredients."
"All food processors, including dairy companies, are on notice about the importance of truthfulness and accuracy with their packaging and labelling, and that they risk serious consequences if they make misleading claims to consumers," Mr Keogh said.
These infringement notices were issued for alleged contraventions of section 29(1)(a) of the Australian Consumer Law, which prohibits false or misleading representations.
Background
Lactalis Australia is a major dairy processor that produces a wide range of dairy products across brands including Pauls, Harvey Fresh, Oak, Vaalia and Ice Break.
Lactalis Australia is owned by the multinational Lactalis Group, which is the world largest fresh dairy company.
In September 2022, Lactalis was penalised $950,000 for breaching the Dairy Code of Conduct by failing to meet some of its 2020-21 milk season obligations, in Federal Court proceedings brought by the ACCC.
Note
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person has contravened certain consumer law provisions.
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australian Consumer Law.
The infringement notices will be published on the ACCC's Infringement Notices Register.
