After action brought by the Australian Competition and Consumer Commission The Federal Court has declared by consent that Pirovic Enterprises Pty Ltd (Pirovic) engaged in misleading conduct and made misleading representations in its labelling and promotion of eggs as ‘free range’. The Court ordered that Pirovic pay a pecuniary penalty of $300,000 and contribute to the ACCC’s costs.
“Credence claims such as free range claims are powerful tools for businesses to distinguish their products. However, if they are false or misleading, they serve to mislead consumers, who may pay a premium to purchase such products,” ACCC Chairman Rod Sims said.
The Court found that the eggs supplied by Pirovic were produced by hens, most of which did not move about on an open range because of a combination of the following factors:
• the stocking densities inside the barns where the hens were housed;
• the flock sizes inside those barns; and
• the number, size and placement and operation of the physical openings to the open range.
“This decision provides very clear guidance that any free range egg claim must be backed by farming conditions and practices implemented by suppliers under which hens actually move about on an open range each day,” Mr Sims said.