Milkio Foods Limited, a Hamilton-based dairy company, has been fined $420,000 by New Zealand’s Commerce Commission for falsely labelling their products as “100% Pure New Zealand” while using imported butter from India. This case highlights concerns about the integrity of product claims and the impact on New Zealand’s dairy industry reputation.
Hamilton Dairy Company Milkio Foods Limited has been hit with a significant $420,000 fine by New Zealand’s Commerce Commission for deceptive labelling practices. Despite marketing their products as “100% Pure New Zealand,” it was discovered that Milkio Foods used imported butter from India in their ghee. This revelation has cast serious doubt on the integrity of the Hamilton-based dairy company and jeopardizes the reputation of New Zealand’s dairy industry, known for its high-quality, locally sourced products. Milkio Foods, a major player in the dairy sector, had built its brand on New Zealand’s global image of clean and green dairy farming, but this commitment has been seriously undermined by the misleading claims.
Case Overview
The Commerce Commission’s decision to fine Milkio Foods $420,000 comes after an investigation revealed that the company falsely claimed its products were sourced from “clean green pasture-based dairy farms in New Zealand.” In reality, some of the butter used in their ghee was imported from India. Judge Thomas Ingram noted that such misrepresentations could severely damage New Zealand’s dairy industry, impacting not just consumers but also other producers who rely on the “Brand New Zealand” reputation.
Milkio Foods’ use of the FernMark logo—a symbol intended to assure consumers of New Zealand authenticity—was particularly scrutinized. Judge Ingram described the misuse of this mark as adding an “unassailable layer of quality assurance” that was misleading and harmful.
Impact on New Zealand’s Dairy Industry
This case highlights the crucial role of accurate product labelling in maintaining the integrity of New Zealand’s dairy industry. Vanessa Horne, General Manager of Fair Trading at the Commerce Commission, stressed that New Zealand’s reputation for high-quality dairy products underpins the value of its dairy industry and exports. The Commission’s action against Milkio Foods underscores its commitment to enforcing fair trading standards and protecting both consumers and honest businesses.
Legal Outcome
Milkio Foods pleaded guilty to 15 breaches of the Fair Trading Act, including making false representations about the origin of their dairy products and unauthorized use of the FernMark logo. The Ministry of Primary Industries initially referred the case to the Commerce Commission, leading to this significant penalty.
The substantial fine imposed on Milkio Foods Limited serves as a stern reminder to other companies about the severe consequences of misleading product claims. This case emphasizes the importance of transparency and accuracy in product labelling, crucial for preserving consumer trust and the integrity of the New Zealand dairy industry.
