ACCC takes action against ‘unfair’ free range egg claims
The Australian Competition and Consumer Commission has raised a series of actions in the Federal Court against egg producers in Western Australia and New South Walesalleging that each of the producer’s use of “free range” was misleading.
The hearings commence in January
It said the use of the term through words and images was “false, misleading or deceptive”.
“The ACCC does not have a role in determining whether particular farming practices are appropriate and the ACCC is not debating the merits of cage, barn or free range systems,” ACCC Chairman Rod Sims said.
“The ACCC’s concern is simply to ensure that the labelling of eggs accurately reflect the particular farming practices of the producer and the expectations of a consumer making purchasing choices based on those representations.”
“Credence claims such as free range, organic, place of origin or country of origin are all powerful tools for businesses to distinguish their products, but misleading consumers who may pay a premium to purchase such products damages the market and is unfair to competitors.
“These matters form part of a continuing investigation by the ACCC into free range claims made by egg producers, which has involved the ACCC serving substantiation notices on a number of egg producers that supply eggs labelled as free range.”
The ACCC is seeking declarations, injunctions, pecuniary penalties, implementation of compliance programs, corrective notices and costs against each producer.
The hearings will commence in January 2014.
Chickens image via Shutterstock