ACCC Launches Legal Action against Heinz over Alleged Misleading Conduct

Friday 24 June 2016 @ 10.51 a.m. | Legal Research | Trade & Commerce

The Australian Competition and Consumer Commission (ACCC) has commenced proceedings in the Federal Court against H.J. Heinz Company Australia Ltd (Heinz) in relation to its Little Kids Shredz products. The ACCC alleges that Heinz made false and misleading representations, and engaged in conduct liable to mislead the public, in relation to the nature, characteristics and suitability of these products for children, in contravention of the Australian Consumer Law (ACL) [Schedule 2 to the Competition and Consumer Act 2010 (Cth)].

Background to the Proceedings

It is alleged that the images and statements represent to consumers that the products are of equivalent nutritional value to fruit and vegetables and are a healthy and nutritious food for children aged one to three years, when this is not the case. The Shredz products’ packaging features prominent images of fresh fruit and vegetables and statements such as “99% fruit and veg” and “Our range of snacks and meals encourages your toddler to independently discover the delicious taste of nutritious food”.

Comment from the Consumer Watchdog

The ACCC Chairman Rod Sims said:

“The ACCC has brought these proceedings because it alleges that Heinz is marketing these products as healthy options for young children when they are not. These products contain over 60 per cent sugar, which is significantly higher than that of natural fruit and vegetables - for example, an apple contains approximately 10 per cent sugar. We also allege that rather than encouraging children to develop a taste for nutritious food, these Heinz Shredz products are likely to inhibit the development of a child’s taste for natural fruit and vegetables and encourage a child to become accustomed to, and develop a preference for, sweet tastes.”

The ACCC’s action follows a complaint by the Obesity Policy Coalition (OPC) about food products for toddlers that make fruit and vegetable claims but are predominantly made from fruit juice concentrate and pastes, which have a very high sugar content.

Aim of the OPC

The OPC aims to influence change in policy and regulation to help prevent obesity, particularly in children. The OPC alerted the ACCC to the potentially false and misleading claims in July 2015 and congratulates the watchdog for putting these products under the spotlight.

OPC Executive Manager, Jane Martin said:

“Heinz Shredz are promoted as a ‘nutritious food' yet they are higher in sugar than some confectionery. We know that these types of foods which are high in sugar are not a nutritious choice for toddlers...Regular consumption of added sugar can lead to weight gain, increasing the risk of chronic diseases and conditions, such as type 2 diabetes, heart disease and some cancers, later in life. Regular sugar intake can also increase the risk of tooth decay and lead to children becoming accustomed to the taste of sweet foods."

Response from Heinz

A statement released by Heinz strenuously denies the allegations made by the ACCC:

“Heinz takes labelling of products very seriously and complies with all Australian labelling and food laws. While the products in question are no longer on the market, we strenuously deny the allegations made by the Australian Competition and Consumer Commission and look forward to defending our position.”

The ACCC is seeking declarations, injunctions, pecuniary penalties, corrective notices and costs.

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

Sources:

Heinz under spotlight over ‘healthy' high-sugar toddler snacks – OPC Media Release

ACCC takes action against Heinz over nutritional claims on baby food products – c-store.com.au

ACCC takes action against Heinz over nutritional claims on food for 1-3 year olds – ACCC Release MR 110/16 

Related Articles: