Pirovic Enterprises falls foul of the ACCC

Egg producer Pirovic Enterprises has been ordered to pay a $300,000 penalty after the federal court found its 'free range' egg claims to be misleading.

The proceedings were initiated by the Australian Competition and Consumer Commission (ACCC) and centred on the ability of the company's hens to move freely.

The court found that the 'free range' eggs supplied by Pirovic were produced by hens that for the most part did not move about on an open range due to stocking densities and flock sizes inside the barns, and the number, size and placement and operation of the physical openings to the open range.

The court therefore found that by labelling and promoting the eggs as ‘free range’, Pirovic engaged in misleading conduct and made misleading representations.

“Credence claims such as free range claims are powerful tools for businesses to distinguish their products. However, if they are false or misleading, they serve to mislead consumers, who may pay a premium to purchase such products,” ACCC Chairman Rod Sims said.

“This decision provides very clear guidance that any free range egg claim must be backed by farming conditions and practices implemented by suppliers under which hens actually move about on an open range each day.”

This case is part of an investigation by the ACCC into free range claims made by a number of egg producers across Australia, which was initiated by the ACCC in response to community concerns.