Uncle Tobys pays $32,400 fine after ACCC charges it with misleading advertisements
The manufacturer and distributor of Uncle Tobys brand oats, the Cereal Partners Australia Pty Ltd, had to pay a fine of $32,400 for spreading misleading claims on the protein content of certain products under the brand. The penalisation came following three infringement notices from the Australian Competition and Consumer Commission (ACCC).
According to the market watchdog, packets of Uncle Toby’s Oats Quick Sachets and Traditional Oats featured statements that suggested that the products contained significant levels of protein in it along with a disclaimer, “when prepared with [1/2 or 2/3] cup of skim milk.”
“These representations were also made in a television commercial promoting Uncle Tobys oats products, which contained a similar fine print disclaimer,” ACCC said in a statement.
According to ACCC, the disclaimer was not sufficient to clarify the impression that has been created by repeated usage of the words “protein” and “superfood” in statements on the packaging and in television advertisements.
“Consumers should be able to purchase food products based on accurate health and composition claims. While the ACCC acknowledges that oats have many health benefits, on their own they are not high in protein, contrary to the representations made about these Uncle Tobys products,” ACCC Chairman Rod Sims said. “Business should be aware that a fine print disclaimer is insufficient to correct or qualify a prominent representation on packaging or in advertising that is false or misleading.”
CPA released a formal statement confirming that the company is no longer using claims that have been the subject of infringement by the ACCC. It added that it has changed the packaging as well as the television advertisements following the infringement notices. The company also said that it never intended to mislead its customers on false claims and that the claims were based on the level of protein content when the oats are prepared with skim milk.
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