ACCC takes action against Arnott's for fat content claims

Arnott’s Biscuits has paid penalties totalling $51,000 following the issue of five infringement notices by the Australian Competition and Consumer Commission relating to representations made by Arnott’s about the fat content of its Shapes Light & Crispy product.

Between October 2014 and July 2015, Arnott’s represented on the packs of four varieties of Shapes Light & Crispy, as well as a multipack, that Shapes Light & Crispy contained “75% less saturated fat”.

Shapes Light & Crispy contain approximately 60% less saturated fat than original Shapes. However, Arnott’s was not comparing the product to its original Shapes recipe, but to potato chips cooked in 100% palm oil. This information was included in a fine-print disclaimer at the bottom of the packs.

Even if potato chips had been an appropriate comparison for the saturated fat content of Shapes Light & Crispy, the ACCC notes that since only around 20% of potato chips sold in Australia are cooked in palm oil, the representation may still have been misleading.

“Consumers should be able to trust the claims that businesses make to sell their products. Small-print disclaimers cannot correct false or misleading representations which are made in a prominent way in advertising or on packaging,” ACCC Chairman Rod Sims said.

“Businesses must ensure that any comparison claims they make are accurate and based on meaningful comparisons for consumers. This is particularly the case regarding claims that involve healthier eating.”

Arnott’s has provided a court-enforceable undertaking to the ACCC that it will not engage in similar conduct for a period of three years. It will also publish corrective notices.

The ACCC issued the infringement notices to Arnott’s because it had reasonable grounds to believe that Arnott’s made a false or misleading representation about the composition of Shapes Light & Crispy that was in breach of the Australian Consumer Law. The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL.