Court declares Nupak ‘Goody’ plastic bags conduct misleading

Posted by Nicole Eckersley on 28th October 2010

The Federal Court in Adelaide has declared Nupak Australia Pty Ltd engaged in misleading and deceptive conduct and made false representations about its ‘Goody’ branded plastic bags.

The Federal Court in Adelaide has declared Nupak Australia Pty Ltd engaged in misleading and deceptive conduct and made false representations about its ‘Goody’ branded plastic bags.

From at least May 2009 Nupak claimed its ‘Goody’ branded plastic bags were biodegradable and compostable in accordance with the Australian Standard, and that they could be legally supplied in South Australia.

In fact, the bags were not only not biodegradable, disintegrable or compostable to Australian Standard criteria, but also contained a heavy metal above the Australian Standard.

Nupak undertook to refrain from making representations that the plastic shopping bags it promotes are biodegradable or compostable in accordance with the Australian Standard without substantiation with scientific testing.

Justice Lander declared that Nupak contravened section 52 and 53 of the Trade Practices Act 1974 and ordered Nupak to publish corrective notices on its website and in the Advertiser newspaper, send a letter to each Nupak customer supplied with Goody plastic bags informing them of the orders of the Federal Court and the undertakings given by Nupak and implement a Trade Practices Compliance and Education Program.

Nupak was also ordered to contribute $10,000 to the ACCC’s costs of the proceedings.

Nupak co-operated with the ACCC in its investigation and settlement of the matter. The proceeding against Goody Environment Pty Ltd is continuing and the matter has been set down for trial in March 2011.