A Hamilton-based dairy company has been fined $420,000 for making claims about some of its products being “100% Pure New Zealand” despite the core ingredients being imported from India.
The Commerce Commission said Milkio Foods Limited used false and incomplete information to retain approval to use the FernMark logo and licence number, which is used internationally to identify products made in New Zealand.
At the Hamilton District Court it admitted 15 breaches of the Fair Trading Act for making false representations about the country-of-origin of the butter used in their ghee products, and using the FernMark logo and licence number without proper authorisation.
Commerce Commission fair trading general manager Vanessa Horne said New Zealand has built a strong reputation for high quality dairy products which helps underpin the value of the dairy industry and exports.
“Milkio took advantage of this reputation to promote their own products through the use of descriptions like ‘from the clean green pasture-based dairy farms in New Zealand’, and ‘produced and manufactured in pristine New Zealand’ despite some of their products using imported butter from India.”
“This conviction should serve as a warning to others who may be looking to falsely claim the New Zealand brand.”
The case was reported to the Commerce Commission by the Ministry for Primary Industries.
