Lactalis Australia has paid $59,400 in penalties after the ACCC issued it with three infringement notices for alleged misleading labelling – the latest in a string of food companies to be hit with penalties over the past two months.
Lactalis Australia is a major dairy processor that produces a wide range of dairy products across brands including Pauls, Harvey Fresh, Oak, Vaalia and Ice Break. The company’s multinational parent group, Lactalis Group, also recently acquired Fonterra’s global Consumer business and associated brands.
The ACCC alleges that Lactalis’ Golden North ‘Country Fresh’ 2L milk and Ferguson Valley ‘WA Dairy Fresh’ 2L milk were labelled as fresh milk, when each contained substantial amounts of powdered reconstituted ingredients.
The Lactalis products were identified in an ACCC investigation of the milk processing industry, which included obtaining information and reviewing the products of several major dairy processors and retailers – finding that processors and retailers largely label their fresh milk products accurately.
However, the investigation identified that Lactalis added substantial amounts of reconstituted skim milk and lactose to its Golden North ‘Country Fresh’ 2L milk, and substantial amounts of reconstituted lactose to its Ferguson Valley ‘WA Dairy Fresh’ 2L milk.
The infringement notices were issued for alleged contraventions of section 29(1)(a) of the Australian Consumer Law, which prohibits false or misleading representations. Lactalis removed the word ‘fresh’ from these product labels after the ACCC raised concerns.
ACCC deputy chair, Mick Keogh, said consumers should be able to trust product labels as accurate descriptions of the products they are buying, particularly for everyday groceries such as milk.
“We were very concerned that prominent ‘fresh’ claims on these products may have been misleading, as consumers would not expect fresh milk to contain substantial amounts of powdered, reconstituted ingredients,” said Keough.
“All food processors, including dairy companies, are on notice about the importance of truthfulness and accuracy with their packaging and labelling, and that they risk serious consequences if they make misleading claims to consumers.”
Lactalis was last penalised for breaching the Dairy Code of Conduct in September 2022, paying $950,000 for failing to meet some of its 2020-21 milk season obligations in Federal Court proceedings brought by the ACCC.
In the past two months, several food and beverage businesses have paid fines brought forward by the ACCC, including Coles and Brownes Foods paying $39,600 each for alleged breach of the Dairy Code, Doreen Egg Aust paying $39,600 for alleged misleading free range claims, and Fruitico Pty Ltd and Fresh Express Produce paying $99,000 each for alleged breaches of the Horticulture Code. Prior to these cases, there had been no penalties reported by the ACCC for over a year.
