Trade Resources Industry Views Cereal Offender: Uncle Tobys Joins ACCC's Naughty List

Cereal Offender: Uncle Tobys Joins ACCC's Naughty List

Uncle Tobys has paid $32,400 in penalties relating to packaging claims about the protein content of its branded oats products.

Cereal Partners Australia, the manufacturer and distributor of Uncle Tobys brand oats, is alleged to have made false or misleading representations following the issue of three infringement notices by the Australian Competition and Consumer Commission (ACCC).

The packaging of Uncle Tobys ‘Quick Sachets’ oats contained the statement: ‘Natural Source of Protein* Superfood’, and the packaging of Uncle Tobys ‘Traditional Oats’ contained the statement ‘Naturally Rich in Protein* Superfood’.

The product packaging in each case contained the disclaimer “*when prepared with [1/2 or 2/3] cup of skim milk”, which appeared in fine print below the misleading statements.

These representations were also made in a television commercial promoting Uncle Tobys oats products, which contained a similar fine print disclaimer.

The ACCC alleged that by combining the words ‘natural source’ / ‘naturally rich’, ‘protein’ and ‘superfood’ in the statements on the packaging and in a television commercial; and presenting the word ‘protein’ prominently in the centre of the front of the packet in a bright colour and in large font sizes, CPA made false or misleading representations that the oats in these Uncle Tobys products contained a significant amount of protein, when this is not the case.

“Consumers should be able to purchase food products based on accurate health and composition claims,” ACCC chairman Rod Sims said.

“While the ACCC acknowledges that oats have many health benefits, on their own they are not high in protein, contrary to the representations made about these Uncle Tobys products.”

“Business should be aware that a fine print disclaimer is insufficient to correct or qualify a prominent representation on packaging or in advertising that is false or misleading.”

Arnott's Biscuits was also under the spotlight this week with news it was forced to pay $51,000 in penalties relating to the saturated fat claims it's been using on its Shapes Light & Crispy products.

The claims on four varieties of Shapes Light & Crispy and a multipack implied the product contained “75% less saturated fat” than Arnott’s original Shapes biscuits, when the figure was closer to 60 per cent less, according to the Australian Competition and Consumer Commission (ACCC).

The ACCC said that the “75% less saturated fat” representation was actually comparing Shapes not to original Shapes but to potato chips cooked in 100 per cent palm oil, according to a fine print disclaimer at the bottom of the packs.

Even if potato chips had been an appropriate comparison for the saturated fat content of Shapes Light & Crispy, the ACCC said, only around 20 per cent of potato chips sold in Australia are cooked in palm oil, so the representation could still have been misleading.

The ACCC issued the infringement notices, it said, because it had reasonable grounds to believe that Arnott’s made a false or misleading representation about the composition of Shapes Light & Crispy, in breach of the Australian Consumer Law.

Source: http://www.packagingnews.com.au/news/cereal-offender-uncle-tobys-joins-accc-s-naughty-list
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