Guidance available on country-of-origin claims

New guidance on complying with the Australian Consumer Law when making country-of-origin claims has been published by the ACCC (Australian Competition and Consumer Commission).

The guidance provides information and examples to help businesses determine when they can use the claims ‘Made in Australia’, ‘Product of Australia’ or ‘Grown in Australia’ and includes advice on how a business can rely on the ‘safe harbour’ provisions of the Australian Consumer Law.

“Any claim that is likely to mislead consumers about the origin of a product will also breach the law. Credence claims are a priority area for the ACCC, particularly those with the potential to adversely impact the competitive process and small businesses,” said ACCC Chairman Rod Sims.

Businesses making false or misleading representations could face penalties of up to $1.1 million under the ACL. For example, Coles paid infringement notices totalling $61,200 for alleged misleading representations about the country of origin of fresh produce made in five of its stores between March 2013 and May 2013.

The guidance has been produced by the ACCC in consultation with an intergovernmental National Working Group chaired by the Department of Industry and Treasury, and including the Australian Customs and Border Protection Service, the Department of Agriculture, the Department of Health, the Department of Foreign Affairs and Trade and Food Standards Australia New Zealand.

The development of the guidance has also involved engagement with the state and territory ACL regulators and a number of industry associations. Various industries raised specific country-of-origin issues with the ACCC and this guidance aims to clarify these areas, the ACCC says.

The guidance document is available via the ACCC website: www.accc.gov.au