Truth in Food Labelling: ACCC Claims Pork Brands Misled on Definition of “Free Range”

Tuesday 29 September 2015 @ 9.33 a.m. | Trade & Commerce

The Australian Competition and Consumer Commission (ACCC) has concluded investigations into alleged misleading conduct in the pork industry arising from claims such as “free range”, “bred free range” and “bred outdoors”. Individual producers and the peak representative industry body, Australian Pork Limited, have co-operated to address the ACCC’s concerns.

Background to the Investigation

From December 2009 to present day, Primo Smallgoods has supplied pork products labelled as “free range” when in fact the pigs, sourced from Denmark, had been confined to areas that were roofed or partially roofed and had solid or partially slatted floors.

Between July 2000 and December 2014, Otway Pork promoted its products as “bred free range”. From 2008, some of KR Castlemaine’s pork products were also promoted as “bred free range”. The pigs used for these pork products were in fact born outdoors but raised indoors to straw based shelters from the age of approximately 21 days.

The ACCC’s Reaction

Commenting on this investigation in a recent ACCC Media Release, the Chairman of the ACCC Rod Sims said:

“It is important that the description on product packaging and in promotional material accurately reflects the living conditions of the animals raised for the production of meat products. Marketing material must use words that consumers can understand, irrespective of whether the words have some special industry meaning.”

The ACCC has accepted court enforceable undertakings from:

  • P&M Quality Smallgoods Pty Ltd (t/a Primo Smallgoods); 
  • George Weston Foods Pty Ltd (t/a KR Castlemaine); and
  • Pastoral Pork Company Pty Ltd (t/a Otway Pork)

as a result of these investigations.

The claims of “free range”

In each of these three cases, the ACCC considered that the reference to either “free range” (used by Primo Small goods) or “bred free range” (used by Otway Pork and KR Castlemaine) in the promotion and labelling of the pork products was likely to give consumers the overall impression that the pigs were farmed according to free range methods. These methods include that, at a minimum, pigs are able to move about freely in an outdoor paddock on most ordinary days.

Mr Sims commented further:

“In the undertakings, the producers have acknowledged that the conduct may have contravened the Australian Consumer Law [contained in Sch 2 to the Competition and Consumer Act 2010 (Cth)]. In all cases, the producers have committed not to use the same descriptions unless their farming practices are such that, at a minimum, the pigs are able to move about freely in an outdoor paddock on most ordinary days. They have also agreed to implement consumer law compliance programs and publish corrective notices.”

Claims of genuine free range farmers being disadvantaged

The ACCC also claims that mis-labelling misled consumers and also disadvantaged genuine free range pork producers. The Commissioner said:

"They're competing with people who aren't raising their pigs in a free range environment and of course it's much more expensive to do so."

Separate action by the ACCC

In a separate action conduct by the ACCC, Australian Pork Limited has agreed to change the title and logo of one of its pork production standards from “Outdoor Bred” to “Outdoor Bred. Raised indoors on straw”. The ACCC considers that the inclusion of the words “Raised indoors on straw” makes it clearer to consumers that the pigs are born outdoors but raised indoors from weaning until slaughter.

Australian Pork Limited said it had accepted the ACCC's recommendation and said it would improve clarity to consumers on exactly how the product they were buying was raised.

Mr Sims said:

“When claims such as “free range” or “bred free range” are misused, consumers may be misled into paying more for a product feature that doesn’t exist … Competitors are also harmed as legitimate free range producers unfairly lose their competitive advantage. Innovation suffers when consumers and business lose trust in the integrity of claims.”

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:

Competition watchdog finds pork brands misled on 'free range' claims – Article from abc.net.au
ACCC concludes review of 'free range' and other similar claims in the pork industry – ACCC Media Release MR 165/15

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