Sunraysia-based table grape traders Grape Co Australia has been penalised around $35,000 by the ACCC following notices the company made false or misleading claims about its grape origins.
Grape Co Australia Pty Ltd and Grape Co Farms Pty Ltd (together Grape Co), published on its website that “Every single one of our grapes is personally hand-selected from the finest fruit on our family’s estate in Sunraysia Australia”.
The ACCC investigated the matter and found some Grape Co branded grapes were grown on third-party growers’ properties, issuing an infringement notice to the company for allegedly making false and misleading representations on its website in relation to the origin of the grapes sold, in breach of the Australian Consumer Law.
The commission also separately issued an additional two infringement notices for alleged violations of the Horticulture Code, with Grape Co Farms paying $21,600 in penalties, after it allegedly traded without written Horticulture Produce Agreements when acting as an agent for grape growers.
ACCC deputy chair Mick Keogh said food producers must ensure they do not mislead consumers with marketing statements about the place of origin of goods or produce.
“This not only impacts consumers, but can also prevent other businesses who are careful about being accurate in their marketing from competing on a level playing field,” said Keogh.
“Consumers looking to support small businesses may make purchasing decisions based on representations that the produce is sourced from a family farm, and it is important they are not misled so they get what they pay for.”
“It is important that traders have written agreements with growers so that both parties clearly understand their rights and obligations and what can and can’t be done under the agreement.”
Grape Co Australia has since amended its website to reflect the true origins of grapes marketed to consumers, and has agreed to amend several terms in its standard form agreements “considered by the ACCC to likely be unfair contract terms”.
