The Australian Competition and Consumer Commission has commenced proceedings in the Federal Court against juice maker Nudie Foods Australia.
The ACCC alleges Nudie made misleading claims on the packaging and in promotional material for two of its fruit juice products, Rosie Ruby and Rosie Blue.
Nudie represented on the Rosie fruit juice labels that the Rosie Ruby juice consisted either solely or predominantly of cranberry, and the Rosie Blue juice consisted either solely or predominately of cranberry and blueberry, when in fact 80% of the Rosie Ruby juice and 78% of the Rosie Blue juice was apple juice, alleges the ACCC.
The ACCC alleges that by making these misleading claims Nudie has contravened sections 52 and 55 of the Trade Practices Act.
The ACCC is seeking declarations, injunctions, corrective advertising, a trade practices law compliance program, and costs.
James Ajaka, who says his title is chief sales and marketing nudie, told SmartCompany.com.au that the company was notified of the ACCC’s concerns before Christmas. He declined to comment on whether the company would be denying its conduct breached the Trade Practices Act.
“We are in discussions with the ACCC and internally,” he said.
Ajaka says Nudie products are now distributed through 6000 outlets Australia-wide, including McDonalds restaurants.
A directions hearing is listed in the Federal Court, Perth, on 4 March 2008