Heinz fined $2.25m for sugary toddler snack

The Federal Court has ordered Heinz to pay $2.25 million for its misleading marketing of Heinz Little Kids Shredz, a decision which is strongly supported by the Obesity Policy Coalition (OPC).

After the OPC’s complaint in 2015, the Australian Competition and Consumer Commission (ACCC) launched legal action against Heinz on the basis that its Shredz products were positioned as a healthy snack for toddlers, but actually contained up to 68% sugar.

In March this year, the Court ruled these health claims were misleading, which has resulted in a $2.25 million penalty. However, this is significantly less than the $10 million penalty the ACCC sought.

“The Heinz Group is one of the largest food companies in the world. We will continue to advocate for stronger penalties to deter large companies from engaging in serious contraventions of Australia’s consumer laws, particularly now that parliament has passed legislation substantially increasing the maximum penalties for breaches of the ACL,” ACCC Chair Rod Sims said.

While OPC Executive Manager Jane Martin welcomed the decision, she said some food products continue to be misrepresented as healthy options for children.

“Food manufacturers should be held to account over the claims they are making to consumers about products for children that are high in sugar,” she said.

"Clearly labelling ‘added sugar’ on the packaging will help parents cut through the marketing spin when they’re choosing healthy snacks for their children.”

The World Health Organization recommends foods containing added sugar, including fruit juice concentrate, should ideally be no more than 5% of a person’s daily energy intake. Martin also said the OPC wants the Health Star Rating System to recognise fruit-sourced sugar as sugar, and rate products accordingly.

Image credit: ©stock.adobe.com/au/Gleam