Australian olive oil producer fined over labelling claims

Posted by AFN Staff Writers on 21st May 2012

South Australian company, The Big Olive Company, has been fined only AU$13,200 despite labelling products as ‘extra virgin olive oil’ when the Australian Competition and Consumer Commission said they were not.

The Big Olive Company produces, bottles and supplies edible oil under a number of brand names, including Oz Olio.

Between December 2010 and March 2011, The Big Olive Company supplied nearly three thousand 500ml bottles of “Oz Olio” oil with a representation of extra virgin olive oil on the front label.

Although there is no mandatory standard for extra virgin olive oil in Australia, it is widely accepted that it is the highest grade oil obtained from the first press of the best quality olives, that it is not blended with other oil and that there are no solvents or refining in the manufacturing process.

This action by the ACCC follows complaints from the Australian Olive Association that numerous oils being sold in Australia as extra virgin olive oil are not of this quality.

The ACCC commissioned independent testing of seven oils, including four imported products and three domestically produced products. The ACCC’s investigation was focussed on identifying those products which were not extra virgin olive oil at the time of bottling.

The testing indicated that one batch of “Oz Olio” oil was not extra virgin olive oil because it contained more free fatty acids than permitted by olive oil trade standards, including the voluntary Australian standard.

A high free fatty acid content indicates that the olives used to make the oil were old, damaged or otherwise of poor quality and the oil was not extra virgin olive oil at the time of bottling. The remaining oils tested all had free fatty acids within the requirements of the standards.

The ACCC is also considering broader concerns raised by the Australian Olive Association about extra virgin olive oil claims and the use of other descriptors of olive oil products. The ACCC has contacted the Association in relation to these matters with a view to further engagement about options that might ensure greater clarity in labelling and that consumers are able to make informed purchasing decisions.