The ACCC is urging businesses to review their country of origin labels now to ensure they comply with the Australian Consumer Law.
“In particular, businesses should review any claims on their product labelling or advertising which suggests that the product was ‘Made in’ a particular country,” ACCC deputy chair Dr Michael Schaper said.
To be able to safely claim that a product was made in a particular country, any imported ingredients or components must undergo a fundamental change in nature, identity or essential character.
Minor processing which only changes the form or appearance of imported goods will no longer be enough to justify a ‘Made in’ claim.
“Consumers are often willing to pay a premium for products that originate from particular countries, but they need to be able to trust the labels. Failure to label products correctly may expose a business to penalties of up to $1.1 million,” Schaper said.
In addition to the general ACL obligations not to make false, misleading or deceptive claims, businesses involved in the retail supply of food will also be bound by the Country of Origin Food Labelling Information Standard from 1 July 2018.
In the last five years, the ACCC has received over 3000 complaints concerning country of origin claims about products ranging from food to furniture, clothing and electrical goods.
