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COMMONWEALTH OF AUSTRALIA (ABN: 122 104 616)
Australia's Prime Minister (CEO) Tony Abbott : "Australia is Open for Business"
Tuesday, September 30, 2014
Coles banned from advertising ‘fresh’ bread after ACCC claims of false advertising
False advertising by Coles
claiming its bread products were ‘freshly baked in-store’ and ‘baked
today, sold today’ has led to a three-year ban by the Federal Court on
making such claims.
The Federal Court is yet to decide on a financial penalty, which could be up to $3 million.
The advertising ban follows a finding in June that the
supermarket chain breached Australian consumer law with “false,
misleading and deceptive” claims.
The ACCC announced in June that Coles’ ‘Cuisine Royale’ and
‘Coles Bakery’ branded bread were actually partially baked and frozen
off-site by local and even overseas suppliers.
Finishing the baking process at Coles stores was not enough to constitute the companies’ ‘freshly baked’ claims as true.
“The Court found that the ‘Baked Today, Sold Today’,
‘Freshly Baked’ and ‘Baked Fresh’ claims made by Coles amounted to a
misleading representation that the par baked bread products had been
baked on the day of sale or baked in a fresh process using fresh not
frozen product,” the ACCC said in a statement in June.
The ACCC became aware of the case when former Victorian premier Jeff
Kennett discovered a loaf of Coles bread subject to the ‘freshly baked
in-store’ claim had been partially made in Ireland. Kennett mailed a loaf to ACCC chairman Rod Sims.