Published02 Sep 2002
In the second juice industry prosecution by the Commerce Commission in
less than a month, Double R Softdrinks was fined $4000 plus costs in the
Christchurch District Court today after pleading guilty to 21 charges of
breaching the Fair Trading Act.
The prosecution followed an investigation by the Commerce Commission
which revealed Double R was making false representations about the
nature of is "Citrus Grove" Orange Juice.
Director of Fair Trading, Deborah Battell said that the breaches
included claims that the drink contained "100% orange juice" when it
contained no more than 45%, and that it was "sweetened by nature" when
it had sugar added.
"There were clear misrepresentations by Double R," she said. "Customers
were forced to rely on information provided on its labelling, and were
misled into buying what was effectively a fruit drink rather than a
juice."
"Last month, Rio Beverages was fined $22,600 for breaching the Act, and
the Commission is currently investigating ten other juice companies for
false or misleading claims as to the nature of their products," she
added.
In handing down the sentence, Judge Green said that he had been lenient
because of Double R's small size and co-operation throughout the
investigation, but added that he would view any further breaches of the
Act very seriously.
Background
Rio Beverages Limited was fined $22,600 plus court costs in the Auckland
District Court last month for five breaches of the Fair Trading Act
relating to false and misleading claims about the health benefits of the
added Echinacea, and the quantity of blackcurrant juice in its
"Thexton's Quality Beverages" range of products.
Media contact: Deborah Battell, Director of Fair Trading
Phone work (04) 924 3760, mobile 029 924 3760
Jackie Maitland, Communications Manager
Phone work (04) 924 3708, mobile 029 924 3708