ACCC 16 July 2013
The Australian Competition and Consumer Commission today announced seven suppliers of bottled water will remove ‘organic’ claims from labelling and marketing material. An eighth supplier has withdrawn its product from sale.
This followed negotiations between the ACCC and the manufacturers and has avoided resorting to enforcement action.
Active Organic, Lithgow Valley Springs Organic, Nature’s Best Organic, Organic Australia, Organic Falls, Organic Nature’s Best and Organic Springs have been renamed and new bottles are making their way on to the market.
“Credence claims, which represent that a product possesses a premium attribute, are a priority for the ACCC; particularly those in the food and beverage industry with the potential to influence consumers and disadvantage competitors,” ACCC Deputy Chair Delia Rickard said.
“Credence claims such as “organic” can be used to justify higher prices and create a competitive advantage for the user. As such it is essential that they are only used correctly.”
“Consumers are increasingly making purchasing decisions that value the types of claims that directly affect the integrity of the product, such as where or how something was made, grown or produced.”
“Organic standards acknowledge that water cannot be organic. Any claim that particular water is organic would therefore be misleading or deceptive,” Ms Rickard said.
“Consumers must be able to trust that products match descriptions on labels so they can make informed purchasing decisions. Misleading credence claims can also undermine the level playing field and disadvantage other suppliers.”
A number of manufacturers argued that the word ‘organic’ was not a representation but part of the brand name. The ACCC rejects this argument.
“Manufacturers cannot hide misleading claims in their brand names,” Ms Rickard said....
@ ACCC negotiates removal of misleading ‘organic’ water claims | ACCC:
The Australian Competition and Consumer Commission today announced seven suppliers of bottled water will remove ‘organic’ claims from labelling and marketing material. An eighth supplier has withdrawn its product from sale.
This followed negotiations between the ACCC and the manufacturers and has avoided resorting to enforcement action.
Active Organic, Lithgow Valley Springs Organic, Nature’s Best Organic, Organic Australia, Organic Falls, Organic Nature’s Best and Organic Springs have been renamed and new bottles are making their way on to the market.
“Credence claims, which represent that a product possesses a premium attribute, are a priority for the ACCC; particularly those in the food and beverage industry with the potential to influence consumers and disadvantage competitors,” ACCC Deputy Chair Delia Rickard said.
“Credence claims such as “organic” can be used to justify higher prices and create a competitive advantage for the user. As such it is essential that they are only used correctly.”
“Consumers are increasingly making purchasing decisions that value the types of claims that directly affect the integrity of the product, such as where or how something was made, grown or produced.”
“Organic standards acknowledge that water cannot be organic. Any claim that particular water is organic would therefore be misleading or deceptive,” Ms Rickard said.
“Consumers must be able to trust that products match descriptions on labels so they can make informed purchasing decisions. Misleading credence claims can also undermine the level playing field and disadvantage other suppliers.”
A number of manufacturers argued that the word ‘organic’ was not a representation but part of the brand name. The ACCC rejects this argument.
“Manufacturers cannot hide misleading claims in their brand names,” Ms Rickard said....
@ ACCC negotiates removal of misleading ‘organic’ water claims | ACCC:
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