Country of origin crackdown: Australian watchdog to monitor labeling law compliance

28 Jun 2018 --- Australia is to introduce its mandatory Country of Origin food labeling next month. The country’s competition and consumer rights’ watchdog will carry out market surveillance checks on 10,000 food products to make sure that businesses are following the new rules.

From July 1, Australian consumers will know much more about where their food comes from due to the introduction of the necessary changes which have been two years in the making. 

Companies will be required to state on product labels exactly where the goods are produced, grown, made or packed. All businesses – including manufacturers, processors and importers that offer food for retail sale in Australia will need to comply with the Country of Origin Food Labelling Information Standard, which specifies how claims can be made about the origin of food products.

And to double check that the new labeling rules are being applied, the Australian Competition and Consumer Commission (ACCC) will be carrying out label inspections and will take further action if deemed necessary. 

The new requirements will apply to most food offered for retail sale in Australia, including food sold in stores or markets, online or from a vending machine, while food sold in restaurants, cafes, takeaway shops or schools, is exempt. 

“Consumers should look out for the new labels if they want to find out where their food is grown, produced, made or packed, so they can make an informed decision about the food they buy,” says ACCC Deputy Chair Mick Keogh.

“We’ve been guiding businesses over the past two years about the new food labeling system, including how to apply and interpret the standard. We are now entering the compliance phase, where we are making sure businesses are presenting accurate information about the country of origin to their customers.”

The ACCC’s market surveillance aims to identify businesses that may not be complying with the food labeling laws. Initially, they will focus on products with a short shelf-life sold through retailers. 

“We have people on the ground to carry out these inspections and will initially focus on fresh or short shelf products sold by supermarkets, both large and small. We will raise concerns with businesses where we believe there is an issue with the country of origin labeling. As always, we can escalate cases which warrant stronger action,” adds Keogh.

“Some consumers are willing to pay extra for products grown, produced or made in Australia, and producers and importers should be aware that any claim which is likely to mislead consumers will also be a breach of the law. We just want to ensure that consumers can make informed choices and businesses have a level playing field to compete fairly in relation to these claims.”

To claim that food with imported ingredients was “made in” a particular country, processing in that country must have created a product that is fundamentally different in nature, identity or essential character from the imported ingredients that went into it. 

Justifying a “made in” claim
Minor processing which only changes the form or appearance of imported goods (e.g., crumbing an imported prawn or reconstituting an imported juice concentrate) will no longer be enough to justify a “made in” claim.

The labeling requirements will vary depending on whether the food is a priority or non-priority food or was grown, produced, made or packed in Australia or another country.

Priority foods include meat, seafood, fruits and vegetables, most dairy products, breakfast cereal, bread, nuts, honey and non-carbonated fruit juices.

Priority foods that are grown, produced or made in Australia will need to be labeled with a “three-part standard mark” label which features the well-known image of a kangaroo in a triangle, a bar chart that shows the proportion of Australian ingredients and descriptive text.

Non-priority foods include seasonings, confectionery, biscuits and snack food, bottled water, soft drinks and sports drinks, tea and coffee, and alcoholic beverages.