Australia: ACCC takes hard-boiled approach to poultry credence claims

Focus: Credence claims and the food production industry
Services: Competition & Consumer Law, Commercial, Intellectual Property & Technology

Recent action

The Australian Competition and Consumer Commission (ACCC) was recently successful in two actions brought against processors and suppliers in the Australian poultry industry for contraventions of the Australian Consumer Law (ACL).

The first case1 related to representations made by Baiada Poultry Pty Ltd and Bartter Enterprises that its Steggles brand chickens were "free to roam around in large barns". In fact, for a large period of their growth cycle, the chickens were raised in a shed system and kept at a stocking density level which inhibited their ability to roam around freely.

These representations, which had been published on product packaging and in print advertisements, were held to be false and Baiada and Bartter Enterprises were found to have engaged in misleading and deceptive conduct (in contravention of s 18 of the ACL), and fined $400,000.

The Australian Chicken Meat Federation Inc (ACMF) was also fined $20,000 for falsely representing on its website that all chickens raised and grown in Australia were raised and grown in large sheds where chickens could roam freely.

The Court accepted that Baiada and Bartter had adopted the "free to roam" phrasing from industry codes and public statements made by industry participants including ACMF.

The second case, brought against Luv-a-Duck,2 arose from representations made on the duck meat supplier's packaging, website, brochures and promotions that its ducks were "grown and grain fed in the spacious Victorian Wimmera Wheatlands" and "range reared and grain fed". In fact, Luv-a-Duck's duck meat products had been processed from ducks that did not spend any time outside their barns. Luv-a-Duck was fined $360,000.

These cases are the most recent in a string of successful actions the ACCC has brought arising from false representations made in relation to food production methods.

Others include:

  • Fining Pepe's Ducks $375,000 for misleading claims that its ducks were "open range" and "grown nature's way", when in fact its ducks were raised in barns and did not spend any time outdoors.3
  • Fining a butcher $50,000 for false and misleading representations as to the source of some of its beef products.4
  • Fining a South Australian egg supplier $50,000 for substituting free range eggs with cage eggs.5
  • Fining Western Australian egg wholesalers $50,000 for selling cartons of eggs labelled "free range" when a substantial proportion of the eggs were not free range.6
  • Issuing an infringement notice against a producer of olive oil for labelling its product as "extra virgin olive oil" and "100% olive oil" when in fact the composition of the product was 93% canola oil and 7% extra virgin olive oil.7

The ACCC has also filed proceedings in the Federal Court against two egg producers, Snowdale and Pirovic, alleging that each of the producers' use of "free range" was misleading.

Credence claims

Credence claims are one of the ACCC's enforcement and compliance priorities for 2014.

It is an offence under the ACL to make a false or misleading representation concerning the place of origin of goods, or that goods are of a particular standard, quality, grade, composition, or have had a particular history.

Premium claims about food products can be highly valued by consumers and can provide a distinct competitive advantage when marketing those products. Consumers rely upon those claims to be accurate and the ACCC will take action where consumers are being misled.

Credence claims include representations that a certain product offers a moral or social benefit. In the case of food producers and suppliers, the ACCC has focused on representations made by producers and suppliers tending to suggest that their poultry products and eggs are ethical or animal-friendly (through the use of terms such as "free range", "cage free", "barn raised").

As well as fines of up to $1.1 million per offence, companies and individuals who breach the ACL may face:

  • costs orders
  • corrective notices to customers, on the company website and business premises
  • corrective advertising
  • injunctions restraining certain conduct, and
  • orders to implement compliance programs.

The ACCC can also issue infringement notices where it has reasonable grounds to believe that a person has contravened certain parts of the ACL. The recipient is required to pay a fine in order to escape further action in relation to that particular contravention.


The ACCC is continuing to focus on protecting consumers from misleading and deceptive claims relating to how food products are made, grown or produced.

The recent cases serve as a useful reminder to all business owners to give consumer issues due attention, and to avoid making false representations or promoting products in a way that may be misleading or deceptive.

Companies in the food production industry should carefully review all representations (including pictorial representations) made on their existing and future product packaging, advertising and website, and check that all claims relating to their products can be substantiated.

As illustrated by the fines imposed upon Baiada and Bartter and the AMCF, it is also important not to rely solely upon guidance from an industry body, as that guidance may itself be incorrect, and businesses may still be liable for following it.


1ACCC v Turi Foods Pty Ltd (No 5) [2013] FCA 1109.
2ACCC v Luv-A-Duck Pty Ltd [2013] FCA 1136.
3ACCC v Pepe's Ducks Ltd [2013] FCA 570.
4ACCC v Kingisland Meatworks & Cellars Pty Ltd [2013] FCA 48.
5ACCC v Bruhn [2012] FCA 959.
6ACCC v CI & Co Pty Ltd [2010] FCA 1511.
7ACCC media release dated 3 June 2013, 'MOI International pays for misleading olive oil claims' < >.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.