GAIA fined for misleading consumers with organic claims
If you are going to state your products are organic you need to make sure they actually are, says the ACCC after Dreamz was fined $37,800 for alleged false or misleading representations.
Trading as GAIA Skin Naturals (GAIA), the brand describes its natural baby bath & body wash, baby shampoo and baby moisturiser as pure, natural and organic. However, these products contain two synthetic chemical preservatives: sodium hydroxyl methyl glycinate and phenoxyethanol.
While certification is not legally required for a product supplied in Australia to be described as organic, a company still needs to ensure its representation is not misleading, false or deceptive, says ACCC commissioner Sarah Court.
“Businesses making organic claims must be able to substantiate those claims,” she explains.
“GAIA’s claims may have misled consumers into thinking these products are free from synthetic chemicals when they are not.”
The ACCC has been assessing the use of organic claims across a range of businesses and products as part of a broader campaign.
“As part of this work, the ACCC identified concerns with a small number of Naturis Organic Breads’ products which do not contain synthetic chemicals or preservatives but contain a mix of organic and non-organic ingredients. In response to our concerns, Naturis has amended its website and the relevant product labels.”
The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection provisions of the Australian Consumer Law.
By Marion Gerritsen