Woolworths in deep trouble after false labelling claims
A bad week for Woolworths just got a whole lot worse with reports confirming Australia’s competition watchdog has the fresh food people in its cross hairs, after a range of false labelling incidents from 2014 to 2017.
The Australian Competition and Consumer Commission (ACCC) contends Woolies incorrectly marked bowls, plates and cutlery as biodegradable and compositable.
The Daily Telegraph reports the ACCC is arguing the labelling was “false, misleading or deceptive”, and in contravention of Australian consumer law.
“We are now in the process of reviewing the ACCC’s claims and (are) considering our next steps,” the statement said.
The ACCC believes Woolworths didn’t do enough, and, “failed to make reasonable or adequate efforts to substantiate these biodegradability and compostability claims”.
“Customers paid a premium because they rightfully thought the environmental claims would have been substantiated,” ACCC commissioner Sarah Court said.
“Woolworths made these claims in circumstances where it was aware there was confusion among consumers and businesses about the meaning of biodegradable and compostable.”
Woolies responded to claims in a statement yesterday, saying the range was made from, “materials derived from corn starch or sugarcane and other natural materials”.
“We treat our obligations under the Australian Consumer Law very seriously, and understand how important it is that environmental claims are clear and accurate for our customers,” the grocery said.
What are your thoughts on this story?