The ACCC has initiated proceedings against a seed company for its claims to farmers about the performance of one of its barley varieties.
Landmark Operations Limited, trading as Seednet, has allegedly made false, misleading and deceptive claims in a fact sheet for its barley variety known as ‘Compass’, according to the ACCC.
At the time of the alleged conduct, Compass was a new barley variety developed by the University of Adelaide.
Seednet markets and distributes Compass to retailers and farmers across Australia under a licencing agreement with the University of Adelaide.
‘Commander’ is an older variety of barley commonly grown by farmers, developed by the University of Adelaide, and marketed and distributed under license by Seednet.
The ACCC alleges that, from at least December 2014 to December 2016, Seednet misrepresented to farmers that Compass barley had strong straw; had better straw strength than Commander; had improved lodging resistance than Commander; and was better suited to early sowing, higher fertility paddocks and higher nitrogen rates than Commander.
By at least December 2014, Seednet had received information which ought to have made it aware that Compass’ performance did not support these representations, according to the ACCC.
It also alleges that, from at least January 2016 to December 2016, Seednet misrepresented to farmers that Compass had higher resistance to a disease known as ‘leaf rust’ than it actually did in NSW, Victoria, Queensland, SA and WA.
By January 2016, Compass had been rated very susceptible to leaf rust in NSW, Victoria and Queensland, and ranging up to very susceptible in SA under consensus ratings through the National Variety Trials program.
“We allege that Seednet knew, or ought to have known, that its representations in relation to Compass’ straw strength and leaf rust resistance were incorrect, but that it did not amend its fact sheet to correct these representations,” ACCC deputy chair Mick Keogh said.
“Farmers have told us they suffer harm as a result of misleading marketing because, without correct information, they assume or are incorrectly advised that other factors such as the weather are to blame when crops don’t succeed or perform in the way that has been represented by suppliers,” he said.
“The sad fact of the matter is farmers often don’t have the time or money to pursue seed companies when products fail or don’t work in the way they should.”
