The Commerce Commission is continuing investigations and enforcement action in the food industry, Commission Fair Trading Manager Rachel Leamy told industry representatives today.
Ms Leamy was speaking at the Food Standards, Regulations and Trans-Tasman Trade Conference in Auckland about how the Fair Trading Act applies to food.
She said the Commission is focusing particular attention on claims that a product is healthier than competitors' products.
It has looked at claims about fat and orange juice, with court cases resulting in each area.
"We have looked at claims made in relation to fibre and did not consider that there are major Fair Trading Act breaches in this area," Ms Leamy said.
"Our focus this year is on claims about sugar, cholesterol, additives and organic issues. We have been examining products in these areas and may take examples of misleading claims through court.
"For several years, we have had guidelines explaining the best practices for manufacturers to use to avoid conflict with the Fair Trading Act. We will update the guidelines as the courts set more precedents and give more guidance."
Of the four court cases taken so far, two have been resolved and two are still before the courts.
In one case, a Levin manufacturer, O and K Limited, pleaded guilty to breaching the Act by describing juice made from concentrate, preservatives and water as "100% pure".
The court's decision reinforced the Commission's view that "fresh" and "freshly squeezed" juice cannot contain preservatives, and that "pure" juice should contain nothing but juice.
Last week's conviction of Pacific Dunlop Holdings (NZ) Limited set a significant precedent for the industry - it confirmed that a factually correct statement can still be misleading.
Pacific Dunlop labelled Plumrose Light Deli Ham as "90% fat free", "light deli ham" and "healthier eating with Plumrose". The Commission did not dispute that the ham was 10 percent fat. It argued that the overall impression created was that this was a lower fat product, when that was not the case. The court agreed and found that the labels were misleading and breached the Act.
Ms Leamy said it is important that the industry realises that the Act works together with the Food Regulations. The Ministry of Health is responsible for the Regulations, which state what information must be on labels. The Act prohibits false or misleading claims - that is, the way the information is provided must not be misleading. This reinforces the Regulations which also prohibit misleading claims.
Copies of Ms Leamy's speech are available from the Commission's Wellington office.
