ACCC issues warning over incorrect country of origin claims
The Australian Competition and Consumer Commission (ACCC) is urging businesses to review their country of origin labels and ensure they comply with the Australian Consumer Law.
ACCC Deputy Chair, Dr Michael Schaper, said companies need to pay attention to any claims say a product is “made in” a particular country.
“Consumers are often willing to be able to safely claim that a product was made in particular country, any imported ingredients or components must undergo a fundamental change in nature, identity or essential character,” Dr Schaper said.
To be able to claim that a product was made in a particular country, any imported ingredients must undergo fundamental change in nature, identity or essential character.
“Failure to label products correctly may expose a business to penalties of up to $1.1 million,” Dr Schaper said.
Companies need to be ready for legislation changes
The ACCC further reminded that from 1 July 2018 all food companies must comply with the new Country of Origin food labelling laws.
“By July 2018, labels on most food products that are made in Australia will have to clearly show the percentage of Australian-grown or produced ingredients,” Dr Schaper said.
In the past five years, the ACCC has received over 3, 000 complaints regarding country of origin claims for food and non-food products.
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