Egg producer fined $300K for false 'free range' claims

Thursday, 25 September, 2014

Pirovic Enterprises has been found guilty of engaging in misleading conduct and making misleading representations for labelling and promoting eggs as ‘free range’ that were anything but.

The company has been fined $300,000 and ordered to contribute to the Australian Competition and Consumer Commission’s (ACCC’s) costs.

Despite labelling its eggs as free range and including images of hens on open pasture, Pirovic admitted that most of its hens do not move about freely on an open range on most days.

“Credence claims such as free range claims are powerful tools for businesses to distinguish their products. However, if they are false or misleading, they serve to mislead consumers, who may pay a premium to purchase such products,” ACCC Chairman Rod Sims said.

“This decision provides very clear guidance that any free range egg claim must be backed by farming conditions and practices implemented by suppliers under which hens actually move about on an open range each day.”

The case is part of a larger ACCC investigation into false free range claims being made by a number of Australia egg producers.

The ACCC initiated court proceedings against Pirovic in December 2013.

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