Court fines GO Healthy for misleading ‘New Zealand Made’ claims

Health supplements seller GO Healthy New Zealand Ltd has been fined $ 337,500 in the Auckland District Court for misleading consumers by claiming its supplements were “ made in New Zealand ”, when the key ingredients in the majority of its products were imported. GO Healthy pleaded guilty to three charges under the Fair Trading Act, following a Commerce Commission investigation. The charges related to promotional ad that appeared across a assortment of media, including posters and early in-store advertising materials, magazine advertisements, billboards, websites, social media and national television receiver ads.

The advertise was used from December 2014 until December 2018 and used the phrase “ New Zealand Made ” to describe the accessory products. The representation implied the key ingredients in the supplements originated in New Zealand when, in fact, entirely eight out of more than 130 GO Healthy products during that clock were made entirely from ingredients originating in New Zealand. While the production process occurred hera, the ingredients inside the capsules were largely imported. Some videos that were separate of the campaign besides included voice over messages and images that reinforced the impression that GO Healthy ’ randomness products were made in New Zealand from ingredients that originated from New Zealand.

General Manager Competition and Consumer Antonia Horrocks says all businesses must remember that any label used on their products must be clear and truthful.

“ Consumers are much influenced by the origin of goods when considering whether to buy something ; this is particularly therefore for ingestible products, such as health supplements. Consumers are entitled to rely on the information provided by retailers about where a product originated. GO Healthy breached that trust by misleading its customers with its claims that its supplements were made in New Zealand. For health accessory consumers, where the ingredients have come from is important data. ”

In sentencing Judge Sharp said, “ New Zealand made representations may provide a feel of affinity to consumers. They may see products equally desirable as a resultant role of being made in New Zealand, and consumers may besides see beneficial aspects that they can attribute to the products. ”

“ If the representations are untrue, they disadvantage competitors. The representations might undermine the benefits to those who are sincerely able to the make the representations that their products are made in New Zealand. ”

Background

GO Healthy is a jobber of health supplements, selling its products to pharmacies and health stores throughout New Zealand. Since 2018, as a leave of previous Commerce Commission action, Go Healthy has amended most of its market materials to include the statement ‘ New Zealand Made From Imported and Local Ingredients ’.

Previous country of origin cases

  • In July 2019 a New Zealand small goods producer was fined $180,000 for misleading consumers about the place of origin of some of its ham products.
  • In May 2017 a health supplement company and its owner were fined more than $500,000 for claiming that bee pollen was New Zealand-made when the bee pollen was sourced from China.
  • In April 2016 the High Court found that a health supplement company’s “New Zealand made” claims were misleading because all the active ingredients were imported from overseas.
  • Since 2011 the Commission prosecuted 11 companies and 11 individuals for selling imported alpaca rugs as “Made in New Zealand”, and/or for claiming duvets were predominantly alpaca, merino wool or cashmere when they were not. A total of more than $1.5 million in fines had been ordered when the most recent company was fined in 2017.

Consumers’ Right to Know (Country of Origin of Food) Act 2018

In 2018 Parliament introduced newly country-of-origin pronounce requirements for food ; but these do not apply to nutritional supplements. The Consumers ’ Right to Know ( Country of Origin of Food ) Act 2018 introduced mandate label to provide information about the state of lineage of certain single-ingredient foods.

Regulations that will prescribe the label requirements are presently being developed by the Minister of Commerce and Consumer Affairs.

Once dispatch, following a transition period ( six months for newly foods and eighteen months for freeze foods ), bankruptcy to label certain single-ingredient products as required will be a rupture of the Fair Trading Act.

If you can’t back it up, don’t say it

The Commission has produced this video and guidance to assist businesses to comply with the police when making representations about their products .

source : https://nutritionline.net
Category : Healthy