Coles fined $61,200 for selling imported fruit as home grown

Victoria Craw &AAP
July 01, 2013
AAP

Supermarket giant Coles has been fined $61,200 for selling imported fruit that it advertised as Australian-grown.

The competition watchdog acted after a complaint that Coles had displayed imported navel oranges and kiwi fruit underneath signs reading `Helping Australia Grow’ and displaying the triangular Australian Grown symbol.

A review by the Australian Competition and Consumer Commission (ACCC) between March and May this year found the signage was also being used in other stores for imported asparagus and almonds.

It comes following news in June that Coles was being investigated by the Australian Competition and Consumer Commission for alleged misleading conduct over its “Baked Today, Sold Today” bread.

Coles denies breaking any law, saying the signs were mistakenly left behind when stock was moved within its stores.

A spokeswoman for the company said Coles remains committed to their ‘96% Australian fresh produce” statements despite the infringement notices issued by the Australian Competition and Consumer Commission.

“Coles has carefully reviewed the ACCC position that the generic claims on fresh produce price boards amounted to false and misleading representations where imported product was also on sale,” the company said.

“Coles does not believe that it has contravened any law but has paid the ACCC fines as a matter of practical expediency to avoid a lengthy and costly legal action in defending our position.”

The ACCC also noted that paying the fines is not an admission that Coles broke the Competition and Consumer Act, but said the signs wrongly gave the impression to customers that the imported produce was Australian grown.

There were small stickers on the produce showing the overseas country of origin, but that did not correct the overwhelming impression that it was Australian due to the imagery of the `Helping Australia Grow’ advertising, the ACCC said.

“Consumers should be able to rely on the accuracy of claims about food, particularly when they are prepared to pay a premium for products made in Australia,” ACCC Chairman Rod Sims said in a statement.

“Misleading country of origin claims can also have a significant impact on the competitive process and hurt the local economy.” Coles said it paid the ACCC’s fines out of expediency to avoid a lengthy and costly legal action in defending its position.

Mr Sims said the misleading signage did not appear to be a case of widespread or systemic conduct, but action was needed because of the importance consumers placed on such claims.

The offences occurred in five stores, in Queensland, NSW, Western Australia and the Australian Capital Territory.

Read more: