The Commerce Commission is continuing its investigation into food labelling and promotional material.
"We have been examining products in these areas and may take examples of misleading claims through court," Commission Chairman Dr Alan Bollard told the Food and Beverage Congress in Auckland today.
Unless the Commission decides to take action against particular products, it will not name those being investigated.
The Commission's involvement comes through its enforcement of the Fair Trading Act. The Act prohibits misleading or deceptive conduct and false or misleading claims. The Commission is investigating the accuracy of claims that foods contain stated levels of food types and chemicals.
It is important to note that a factually correct statement can still be misleading. It is the overall impression created that counts.
"For example Plumrose Light Deli Ham was labelled as being 90 percent fat free. However, the Judge found that, although this was true, it was liable to mislead because the overall impression was that it was a low fat ham when, in fact, it was between two and four times higher in fat than other hams," Dr Bollard said.
The Commission is carrying out a long-term investigation into claims about food. It has previously focused on claims about fat content and orange juice. This resulted in a series of court cases, one of which is still before the courts.
It has produced guidelines for the orange juice industry to help manufacturers avoid breaching the Act.
Examples of problems the Commission has encountered include:
· "lean steak mince" that was mutton, not beef, and contained more than 15 percent fat;
· 80 percent fat free "topside mince" that at times contained more than 20 percent fat and was not from topside cuts;
· wine packaged in a way closely resembling a commonly known wine, with all words in English except for "apple wine", which were in Maori;
· "pure" fruit juice made from concentrate, tap water, sugar and preservatives;
· imported food showing only the New Zealand distributors address;
· "free range" hens kept permanently in sheds; and
· misleading claims about the health benefits of a brand of eggs.
The Commission puts considerable effort into educating business people through guidelines, publications, seminars, providing speakers to conferences and working with industry groups. However, where there has been widespread consumer detriment, repeat offending, an industry practice breaches the Act, or a legal precedent is needed, the Commission will take court action.
Copies of Dr Bollard's speech are available from reception at the Commission's Wellington office, level 7, Landcorp House, 101 Lambton Quay.
Media contact: Communications Officer Vincent Cholewa
