Steggles chickens have less room to move around than an A4 sheet of paper. But the company was deceiving consumers by advertising claims that they were "free to roam" in large barns, and is now being punished by the Federal Court, according to the ACCC.
The Australian Competition and Consumer Commission (ACCC) instituted proceedings against the suppliers of Steggles branded chicken products, Baiada Poultry and Bartter Enterprises, in September 2011 about how "free" its chickens were.
Back then, fast food chain KFC had to pull its ads suggesting that its chicken, sourced from suppliers such as Steggles, could "roam free".
The issue ended up in the Federal Court, where the two firms were found guilty of using false, misleading and deceptive claims in their advertising. The ACCC alleged the chickens had floor space smaller than an A4 piece of paper, making its "free to roam" in large barns marketing claims wrong.
The Federal Court also found that industry body, the Australian Chicken Meat Federation Inc (ACMF), had also used false claims on its website. It claimed that chickens produced in Australia were ‘free to roam’ or able to ‘roam freely’ in large barns, according to the ACCC.
ACCC Commissioner Sarah Court said: “Consumers must be able to make informed purchasing decisions. Promotional activities that convey an impression of farming practices are powerful representations that influence food choices.
“Misleading credence claims can also undermine the level playing field and disadvantage other suppliers. The Court’s decision makes it clear to producers and suppliers that any claims made in relation to farming practices must be accurate.”
The parties will appear at a directions hearing on 12 July 2013 for timetabling orders regarding submissions on relief, including penalty.
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