Economy

Iconic manufacturer admits false “Australian Made” claims

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Iconic Victorian manufacturer Creswick Woollen Mills has admitted it falsely labelled premium products with the “Australian Made” despite the fact the products were mostly made in China.

Iconic Victorian manufacturer Creswick Woollen Mills has admitted it falsely labelled premium products with the “Australian Made” despite the fact the products were mostly made in China.

The Australian Competition and Consumer Commission uncovered the false claims after an extensive investigation. The watchdog found that while the cutting and sewing for Crewick’s premium merino wool blankets was done in Australia, the blanket material was spun and woven in China.

Creswick has told the ACCC that David Jones is the biggest retailer of the blankets.

Creswick admitted it had contravened several sections of the Trade Practices Act. Under the Act, goods can only be labelled as being Australian Made if they have been “substantially transformed” in Australia, and at least 50% of manufacturing costs have been incurred in Australia.

ACCC chairman Graeme Samuel says it is important that consumer confidence in the integrity of the Australian Made logo is maintained.

“Many consumers buy particular brands specifically because they want Australian made goods and are entitled to expect that claims made by a business that its goods are Australian made are correct and truthful.”

Creswick has agreed to publish notices about the false claims in major daily newspapers and on its website and remove all Australian Made logos and labels from its packaging.

Related stories:

Court finds online retailers engaged in misleading and deceptive conduct
Federal Court slams another case of misleading advertising

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