A second company selling Royal Jelly in Auckland souvenir stores, falsely claiming its product to be New Zealand made, has been convicted and fined in the Auckland District Court yesterday.   Shim's International Limited, trading as Royal Deer of New Zealand was fined $6,000.

Shim's International was convicted on two charges of breaching the Fair Trading Act in relation to claims made about its product Health Plus Royal Jelly Extract.

Royal Jelly is believed to have health benefits and New Zealand royal jelly is considered to be of a higher quality than royal jelly from other parts of the world because it generally has higher levels of the active ingredient 10HDA.

The labels on Shim's International's royal jelly product claimed it was a "Product of New Zealand", and also pictured a kiwi with the words "Manufactured in New Zealand", and a map of New Zealand with the words "Export quality from New Zealand".

The product was in fact made up of powdered royal jelly sourced from China, and the only New Zealand ingredients were the white beeswax used as a carrying agent for the royal jelly and the purified water used to make the capsule shell.

 "A country of origin claim must be true. It is particularly the case with royal jelly that claiming the product is made in New Zealand implies that it is a higher quality product and therefore it is likely to command a premium price. Not only will consumers of the products have been misled but New Zealand's tourist image is harmed, and competitors marketing genuine New Zealand royal jelly have been harmed," said Commerce Commission Fair Trading Manager, Wellington, Greg Allan.

 "The fact that this is the second company to be fined this month for false country of origin claims on royal jelly products indicates there is a problem in this market. These traders are taking advantage of foreign tourists and misusing the New Zealand brand in the false country of origin claims," said Mr Allan.

In May 2008, Shim's International received a warning from the Commerce Commission over false country of origin claims on woollen slippers.

Background

Royal Jelly is a key active ingredient used in dietary supplements. It comes from the honey bee secretion that is used in the nutrition of larvae.10-Hydroxy-2-Decenoic Acid (10HDA) is a substance which exists only in royal jelly. 10HDA is a fatty acid which is involved in growth and immunity. 10HDA is an important factor in assuring quality and potency. New Zealand royal jelly is believed to be of a high quality, with readings of 10HDA higher than found in royal jelly from other countries. In New Zealand royal jelly products made from imported ingredients make up approximately 95 per cent of the market. Genuine New Zealand royal jelly products are sold at a premium price.

Related cases. On 4 May 2010 New Zealand Natural Care Products Limited pleaded guilty to two charges of breaching the Fair Trading Act related to making false or misleading representations concerning the country of origin of royal jelly products. The company was fined $15,000 in the Auckland District Court.