This is according to a report by the New Zealand (NZ) Commerce Commission, which revealed that Hamilton-based dairy company Milkio Foods Limited has been fined NZ$420,000 for misleading consumers about the origin of some of its dairy products.
Milkio admitted to 15 breaches of the Fair Trading Act, including making false statements about the country of origin of butter used in its products and using the FernMark logo and licence number without proper authorisation.
FernMark is a trademark officially recognised and supported by the New Zealand government that provides information about the product's country of origin and its connection to NZ. In setting the penalty, it was emphasised that the misleading could cause serious harm to the New Zealand dairy industry.
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“New Zealand has built an international reputation for high-quality dairy products, which adds value to our dairy industry and exports,” said Vanessa Horne, Director General for Fair Trading at the Trade Commission.
She added that Milkio used this reputation to promote its own products, using descriptions such as “from clean, green New Zealand dairy farms” and “produced and made in pristine New Zealand”, even though some products used imported butter from India.
– The Commission will act to protect consumers and businesses that comply with the Fair Trading Act's requirements for accurate information that can be supported by manufacturers and retailers, said the Director General of Fair Trading.
