Biscuit manufacturer Arnott's has been rapped over the knuckles by the Australian Competition and Consumer Commission (ACCC) for misleading claims over the fat content in its Shapes Light & Crispy product.
The business has to pay penalties totalling $51,000 following the issue of five infringement notices by the ACCC. On the packs of four varieties of Shapes Light & Crispy, and a multi-pack, between October 2014 and July 2015, Arnott's said Shapes Light & Crispy contained “75% less saturated fat” than Arnott’s’ original Shapes biscuits.
However, the biscuits contained approximately 60% less saturated fat than the original Shapes.
In making the “75% less saturated fat” representation, Arnott’s was said by the ACCC to be comparing its Shapes Light & Crispy product not to the original Shapes but to potato chips cooked in 100% palm oil.
This was included in a fine print disclaimer at the bottom of the packs, however, even if potato chips had been an appropriate comparison for the saturated fat content of Shapes Light & Crispy, the ACCC noted 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.”
“Truth in advertising, particularly where misleading claims are made by large businesses, is a priority enforcement area for the ACCC,” Sims added.
As well as paying the fines, 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 a corrective notice on its website and in the nationally published Foodmagazine.
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