Coles is again in hot water with the competition regulator, this time over mislabelling of imported fresh produce.
The retailer has paid six fines worth a combined $61,200 for representations made in five of its stores about the source of some of its fruit and vegetables.
The Australian Competition and Consumer Commission (ACCC) said it took action after receiving a complaint that Coles had displayed some imported navel oranges and kiwi fruit underneath price boards reading ‘Helping Australia Grow’ with the triangular ‘Australian Grown’ symbol.
The ACCC said it then surveyed a number of Coles stores and found that the signs were also being used in other stores to advertise imported asparagus and almonds, which gave the overall impression that the imported produce was Australian grown, when it was not.
The claims were made in between March and May this year in stores across Queensland, New South Wales, Western Australia and the Australian Capital Territory.
The ACCC said that while the overseas country of origin was correctly identified either by stickers on the produce itself, on its packaging or under the display bin, these relatively small sized stickers or statements were not sufficient to correct the overwhelming impression of the ‘Helping Australia Grow’ campaign imagery that was associated with the sale of the product.
According to the ACCC, Coles had said the conduct arose out of the relocation of stock within stores without updating the promotional imagery on the price boards, but the regulator said it considered action was still necessary in light of the importance consumers place on representations of this kind, and the importance of strong compliance processes when choosing to make such claims in the context of a widespread campaign.
“Consumers should be able to rely on the accuracy of claims about food, particularly when they are prepared to pay a premium for products made in Australia. Misleading country of origin claims can also have a significant impact on the competitive process and hurt the local economy,” ACCC chairman Rod Sims said.
“While this does not appear to be a case of widespread or systemic conduct, ‘Helping Australia Grow’ is a significant national campaign driven hard by Coles to advertise its fresh produce. This is a lesson to all retailers that they need to take care when undertaking significant advertising campaigns to ensure consumers are not misled by those campaigns,” Sims said.
Last month, the ACCC instituted proceedings in the federal court over claims made by Coles regarding par-baked bread sold at its in-house bakeries which was being promoted as ‘Baked Today, Sold Today’ and in some cases ‘Freshly Baked In-Store’.
The ACCC has said it is prioritising its work in relation to credence claims, particularly those in the food industry with the potential to have a significant impact on consumers and competitors.
