Lactalis Faces ACCC Penalty for Misleading Consumers on Milk Freshness

Lactalis ACCC Fine: Australian Milk Company Penalised Over Misleading 'Fresh Milk' Labels

Australia's leading dairy company Lactalis Australia Pty Ltd has been penalised by the Australian Competition and Consumer Commission (ACCC) after allegedly misleading consumers by labelling two of its milk products as "fresh milk" despite the products containing substantial amounts of reconstituted powdered milk. The consumer watchdog stated that the company made false or misleading representations through its product labelling, prompting regulatory action and financial penalties.

The ACCC issued three infringement notices against Lactalis Australia, which has since paid penalties totalling AUD 59,400 and removed the word "fresh" from the affected products. The case has sparked renewed discussions about food labelling standards, consumer rights, and the importance of providing accurate information on food packaging.

The investigation has also served as a warning to food manufacturers across Australia, with the ACCC reminding companies that consumers have the right to receive truthful and transparent product information.

Lactalis Australia Fined by ACCC Over Misleading Milk Labels

The Australian Competition and Consumer Commission (ACCC) has taken enforcement action against Lactalis Australia Pty Ltd after determining that two of its milk products were labelled in a way that could mislead consumers.

According to the regulator, the company described the products as "fresh milk", even though they allegedly contained significant quantities of reconstituted milk powder and skim milk rather than only fresh milk sourced directly from dairy farms.

The ACCC believes this labelling could lead consumers to purchase the products under the assumption that they contained only fresh milk, making the packaging potentially deceptive.

Following the investigation, Lactalis Australia accepted the infringement notices, paid the financial penalties, and updated the product labels.

Which Milk Products Were Involved?

The ACCC's action relates to two milk products sold by Lactalis Australia.

Affected Products

• Ferguson Valley WA Dairy Fresh 2L Milk

• Golden North Country Fresh 2L Milk

Both products were marketed as "fresh milk", but the ACCC alleged they contained substantial amounts of powdered milk that had been reconstituted before being sold to consumers.

It is important to note that the Golden North Country Fresh milk product involved in the investigation is not associated with South Australia's Golden North Ice Cream brand.

The clarification was issued to avoid confusion among consumers because the two brands have similar names but are separate businesses.

Why Did the ACCC Take Action?

The ACCC explained that consumers generally understand that milk undergoes standard processing, including:

• Pasteurisation

• Homogenisation

• Adjustment of butterfat levels

These processes are considered normal and necessary to meet Australia's fresh drinking milk standards.

However, the regulator stated that consumers would reasonably expect a product labelled "fresh milk" to remain fundamentally fresh milk rather than containing significant quantities of ingredients made from milk powder.

According to the ACCC, using reconstituted milk while continuing to market the product as "fresh" may create a false impression about the nature and quality of the product.

What Did the ACCC Find?

During its investigation, the ACCC found that both milk products allegedly contained substantial amounts of powdered reconstituted ingredients.

This meant the milk was not simply processed fresh milk but had been produced using milk powder mixed back with water and skim milk before being packaged.

The regulator argued that this distinction is important because many consumers specifically choose fresh milk believing it comes directly from recently collected milk after only standard processing.

As a result, the ACCC concluded that the product descriptions had the potential to mislead customers.

Official Statement from the ACCC

ACCC Deputy Chair Mick Keogh explained why the regulator considered the labelling to be misleading.

According to him, consumers generally understand that fresh milk undergoes necessary processing before sale, including pasteurisation and homogenisation.

However, he said consumers would still expect milk described as "fresh" to remain largely as it comes from the cow, apart from these standard treatments.

He further explained that where milk has been substantially reconstituted using milk powder, calling it "fresh milk" could give consumers an inaccurate impression about the product.

The ACCC stressed that businesses must ensure all product descriptions accurately reflect the contents of the package.

Penalty Imposed on Lactalis Australia

Following the investigation, Lactalis Australia received three infringement notices from the ACCC.

Key Penalty Details

• Company: Lactalis Australia Pty Ltd

• Regulator: Australian Competition and Consumer Commission (ACCC)

• Number of Infringement Notices: Three

• Total Financial Penalty: AUD 59,400

• Reason: Allegedly making false or misleading representations about "fresh milk."

Although paying an infringement notice is not an admission of guilt, it resolves the alleged breaches without court proceedings.

The company also cooperated by updating the labels on the affected products.

Lactalis Removed the Word "Fresh" from Both Products

One of the most immediate outcomes of the ACCC's investigation was the change in product packaging.

Lactalis Australia has:

• Removed the word "Fresh" from both affected milk products.

• Updated the product labelling following the ACCC's concerns.

• Continued selling the products with revised packaging.

The packaging changes are intended to ensure consumers receive more accurate information when purchasing dairy products.

Who Is Lactalis Australia?

Lactalis Australia is one of Australia's largest dairy companies and forms part of the Lactalis Group, a multinational dairy business headquartered in France.

The company owns numerous well-known dairy brands and manufactures a wide range of products, including:

• Milk

• Cheese

• Butter

• Yoghurt

• Cream

• Other dairy products

Globally, the Lactalis Group is recognised as one of the world's largest fresh dairy companies, supplying products to consumers across many countries.

Because of its significant market presence, the ACCC's action has attracted considerable attention within Australia's dairy industry.

Timeline of the Case

Event - Details

Consumer concerns examined -ACCC reviewed the labelling of selected milk products.

Investigation conducted-The regulator examined whether the products matched their "fresh milk" claims.

Products found to contain reconstituted ingredients-ACCC alleged significant amounts of powdered milk were used.

Three infringement notices issued-Lactalis Australia received regulatory action.

Penalty paid AUD 59,400-paid by the company.

Product labels updated-The word "Fresh" removed from both products.

Why This Case Matters

The action against Lactalis Australia highlights the importance of accurate food labelling in protecting consumers.

When shoppers purchase products labelled "fresh", they rely on those claims to make informed choices. Any misleading description can affect purchasing decisions and reduce consumer confidence in food manufacturers.

The ACCC has emphasised that truthful packaging and transparent product information are essential for maintaining trust in Australia's food industry.