ACCC v H.J. Heinz Company Australia Limited [2018] FCA 360: Heinz's Packaging Misleading
Thursday 22 March 2018 @ 12.15 p.m. | Legal Research | Trade & Commerce
In the recent judgment of ACCC v H.J. Heinz Company Australia Limited [2018] FCA 360 (19 March 2018), Justice White found that the packaging of Heinz Little Kids Shredz food misleadingly claims that the snack product is beneficial to the health of young children.
According to an ACCC Media Release of 19 March 2018:
The Australian Competition and Consumer Commission (the ACCC) also alleged that Heinz contravened sections 29(1)(a), 29(1)(g) and 33 of the Australian Consumer Law (the ACL) - which is contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth) (the Act).
Background
During 2017 the ACCC launched legal action against H.J. Heinz Company Australia Limited (Heinz), with the ACCC alleging Heinz were deliberately misleading the public about the nutritional content of the Shredz range, which comprises products containing fruit pastes, purees and concentrate.The ACCC's initial complaint referred to three items in the Shredz range — an apple product, a peach product, and a fruit and chia product.
The Judgment
During the court proceedings, counsel for the ACCC said the boxes feature images of fruit and vegetables and state "99 per cent fruit and veg" when the products contain around 60 per cent sugar.
In handing down his judgment, His Honour upheld part of the ACCC's claim that the representations on the boxes falsely imply that the products were beneficial to toddlers.
His Honour said at [para 314]:
and at [para 312] of the judgment:
However, His Honour dismissed claims by the ACCC that the packaging implied the products had the same nutritional value as the natural fruit and vegetables pictured on the box. He said at [para 65]:
His Honour also dismissed accusations that Heinz suggested "… it would encourage the development of healthy eating habits …" for young children and that the products were not nutritious.
His Honour commented further at [para 146]:
Comment from the ACCC
In a Statement from the ACCC, Acting Chair Delia Rickard commented:
Comment from Heinz
Managing Director of Heinz, Bruno Lino said the company was disappointed with the decision, but respected it. He said in a statement:
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Sources:
Court finds Heinz made a misleading health claim – ACCC Media Release 41/18 (19 March 2018)
Heinz packaging of Little Kids Shredz food product deemed misleading by Federal Court – (Rebecca Opie, ABC News, 19 March 2018)
ACCC v H.J. Heinz Company Australia Limited [2018] FCA 360 (19 March 2018)