Food Law Bite: Heinz receives $2.25 million penalty for misleading packaging

In our 28 March 2018 edition of IP@Ashurst we reported that Heinz had been found to have engaged in misleading and deceptive conduct in contravention of the Australian Consumer Law in relation to the packaging of its Little Kids "Shredz" products. On 24 August 2018 the Federal Court issued its decision regarding the relief to be awarded. In that decision the Federal Court ordered that Heinz:

• pay the Commonwealth of Australian within 30 days the sum of $2.25 million by way of pecuniary penalty;
• establish and maintain for a period of 3 years a Consumer Protection Law Compliance Program; and
• pay the ACCC's costs on a party and party basis.

The Federal Court refused the ACCC's claims for the making of corrective publication orders. When discussing the basis for the quantum of the penalty, the Federal Court noted that the amount took account of the serious and extensive nature of the contraventions, their effects and the need for both specific and general deterrence.

Authors: Lisa Ritson, Partner; Annika Barrett, Senior Expertise Lawyer