Uncle Tobys Oats Brand Rolled for Misleading Advertising

Friday 27 November 2015 @ 8.59 a.m. | Legal Research | Trade & Commerce

It has been reported in a recent ACCC Media Release, that Cereal Partners Australia Pty Ltd (CPA), the manufacturer and distributor of Uncle Tobys brand oats, has paid penalties of $32,400 in relation to alleged false or misleading representations about the protein content of certain Uncle Tobys brand oats products. This followed the issue of three infringement notices by the Australian Competition and Consumer Commission (ACCC).

Background to the action

The ACCC issued the infringement notices because it had reasonable grounds to believe that CPA made false or misleading representations in contravention of the Australian Consumer Law (ACL) [the ACL is contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth)].

The packaging of Uncle Tobys “Quick Sachets” oats contained the statement “Natural Source of Protein* Superfood”, and the packaging of Uncle Tobys “Traditional Oats” contained the statement “Naturally Rich in Protein* Superfood”.

The product packaging in each case contained the disclaimer “*when prepared with [1/2 or 2/3] cup of skim milk”, which appeared in fine print below the misleading statements.

These representations were also made in a television commercial promoting Uncle Tobys oats products, which contained a similar fine print disclaimer.

Allegations made by the ACCC

The ACCC alleged that by:

  • combining the words “natural source” / “naturally rich”, “protein” and “superfood” in the statements on the packaging and in a television commercial; and
  • presenting the word “protein” prominently in the centre of the front of the packet in a bright colour and in large font sizes,

CPA made false or misleading representations that the oats in these Uncle Tobys products contained a significant amount of protein, when this is not the case.

The ACCC did not consider the disclaimer contained on the packaging and a similar disclaimer in the television commercial was sufficient to correct the dominant impression created by these statements and their presentation.

Reaction from the ACCC

Commenting on this case, the ACCC Chairman Rod Sims said:

“Consumers should be able to purchase food products based on accurate health and composition claims. While the ACCC acknowledges that oats have many health benefits, on their own they are not high in protein, contrary to the representations made about these Uncle Tobys products. Business should be aware that a fine print disclaimer is insufficient to correct or qualify a prominent representation on packaging or in advertising that is false or misleading. Truth in advertising, particularly where misleading claims are made by large businesses, is a priority enforcement area for the ACCC.”

Response from CPA

A Cereal Partners Australia spokesperson said the claims reflected the way most people prepared and ate oats, according to consumer research. She said:

"However, CPA acknowledges the ACCC's view that some people may misinterpret the claims and has stopped using them. The television advertisements stopped running before the infringement notices were received and the packaging change is nearing completion with new packaging currently appearing on shelves."

The company also said that it never intended to mislead its customers on false claims and that the claims were based on the level of protein content when the oats are prepared with skim milk.

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Sources:

Uncle Tobys pays $32,400 fine after ACCC charges it with misleading advertisements –International Business Times

Uncle Tobys (Cereal Partners Australia) pays $32,400 in penalties for alleged false or misleading representations about Uncle Tobys oats – ACCC Release MR 233/15

Uncle Tobys oats maker penalised by ACCC for misleading 'protein superfood' claim – Article from smh.com.au 

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