Milkio Foods, a New Zealand-based dairy company, has incurred a $420,000 fine for misleading consumers with false claims on its packaging.
The company falsely promoted its products as “100% pure New Zealand,” despite importing a key ingredient from India.
This misrepresentation has raised significant concerns about the potential harm to New Zealand’s dairy industry and its global reputation for quality.
The penalty, determined by Judge Ingram, reflects the serious implications of such misrepresentations not only for consumers but also for other producers who depend on the “brand New Zealand” for selling dairy products.
Commerce Commission Fair Trading general manager Vanessa Horne said: “New Zealand has built an international reputation for high-quality dairy products, which underpins the value of our 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.”
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By GlobalData
Milkio’s deceptive practices extended to retaining approval to use the FernMark logo and licence number, a symbol signifying New Zealand-made products.
Judge Ingram described the misuse of FernMark as part of Milkio’s brand strategy, which was meant to add a layer of quality assurance for consumers.
“This conviction should serve as a warning to others who may be looking to falsely claim the New Zealand brand,” Horne added.
Milkio admitted to 15 breaches of the Fair Trading Act, including making false country-of-origin representations about the butter in their ghee products and unauthorised use of the FernMark logo and licence number.
The Ministry of Primary Industries had referred the case to the commission.
