Unilever and Smith's have both been rapped over the knuckles for on-pack claims that Rainbow Paddle Pops and Paws Pizza Supreme Rice Snacks were “school canteen-approved”.
The Australian Competition and Consumer Commission (ACCC) has fined Unilever and Smith's Snackfood Company $10,800 each for making misleading claims without a sufficient disclaimer.
Both products claimed the snacks plastered “canteen-approved” logos on packaging, as well as a disclaimer that the products met the 'amber' criteria of the National Healthy School Canteens Guidelines in small-sized font on a different side of the packaging to the logos.
The 'amber' rating means products should be selected carefully rather than eaten regularly in large amounts.
“The ACCC believes both companies were using logos to claim that these products were a healthy option for school canteens to supply to children, when they were not,” ACCC commissioner Sarah Court said.
“School canteen managers, parents and caregivers rely upon product packaging and labelling when choosing healthy snacks for children.
“The ACCC is currently examining consumer protection issues around ensuring that the health claims made by large businesses are accurate and will not mislead consumers.”
Unilever and Smith’s have paid the penalties and informed the ACCC they will stop using the logos on their product packaging.
In June, Heinz was also called out over misleading claims about its Little Kids Shredz product range for toddlers.
The most recent matter was first brought to the ACCC’s attention through a complaint made by consumer advocacy group Choice late last year.
“School canteen-approved logos are essentially acting as health halos for processed, packaged foods, so the decision to fine Unilever and Smith’s is welcome news,” Choice's head of communications Tom Godfrey said.
The Department of Health established the National Healthy School Canteens Guidelines (NHSC) Guidelines in 2010 to provide training and guidance to school canteen managers so they can make informed assessments of the nutritional value of food and drink that may be supplied in school canteens.
"These supermarket products promoted an ‘amber rating’, which in a canteen setting means they should be ‘selected carefully’ rather than eaten regularly," Godfrey said.
"Without the context of the guidelines, these claims are pushing unhealthy options.”
Choice’s research found that 43 per cent of parents believed that products with these logos were healthier than similar products without logos, and 42 per cent would be more likely to choose a product with one of these logos than a similar product without the logo.