Major dairy company penalised for misleading "fresh milk" claims

The Australian Competition and Consumer Commission (ACCC) has issued Lactalis Australia Pty Ltd with three infringement notices totalling $59,400 for falsely marketing two milk products as "fresh" when they contained substantial amounts of powdered milk.

The enforcement action targets Ferguson Valley WA Dairy Fresh 2L milk and Golden North Country Fresh 2L milk, both products distributed nationally by the multinational dairy conglomerate. In response to the regulatory action, Lactalis has removed the word "fresh" from both product labels.

Powder-based formulation contradicts fresh milk claims

The ACCC's investigation revealed that both products contained significant quantities of powdered milk reconstituted into liquid form, contrary to the "fresh milk" designation on packaging. Under Australian Consumer Law, such representations constitute misleading conduct when they falsely suggest products are manufactured directly from fresh milk rather than reconstituted powder.

"Consumers purchasing milk products labelled as 'fresh' have a reasonable expectation they are purchasing fresh liquid milk, not products substantially made from powdered milk ingredients," an ACCC statement indicated.

The investigation underscores ongoing tensions between manufacturing practices and consumer expectations within the Australian dairy sector, where price pressures have increasingly driven producers towards alternative formulation methods.

Compliance measures and industry implications

Beyond the financial penalties, Lactalis has committed to removing misleading terminology from affected product lines and implementing corrective labelling practices. The company's swift compliance with regulatory directives suggests acknowledgement of the breach, though no formal admission of liability has been made public.

The enforcement action carries broader significance for Australia's dairy industry, where producers operating in regional areas—particularly Western Australia and South Australia where these products are manufactured—face intense competition from larger interstate competitors. The case highlights regulatory scrutiny on labelling practices that may affect consumer trust in locally-produced dairy alternatives.

Consumer protection framework strengthened

The ACCC's action reinforces its commitment to policing misleading product claims under the Australian Consumer Law, particularly within the food and beverage sector. Recent years have seen increased enforcement against dairy and plant-based milk manufacturers making unsubstantiated freshness or origin claims.

• Ferguson Valley WA Dairy Fresh and Golden North Country Fresh products affected
• Three infringement notices issued for misleading labelling representations
• Total penalties of $59,400 imposed
• "Fresh" terminology removed from both product labels

Consumer advocates have welcomed the regulatory intervention, noting that transparent labelling practices remain essential as dairy producers adapt manufacturing processes to economic realities. The case also serves as a reminder to consumers to scrutinise ingredient lists and manufacturing information on packaged dairy products.

Source: ABC News