Darling Downs Fresh Eggs has been fined AUD$250,000 ($177,233) for mis-labeling its eggs as ‘free range’. This case was brought before the court by Australian Competition and Consumer Commission (ACCC).
The Federal Court declared that RL Adams Pty Ltd, which trades under the name of Darling Downs Fresh Eggs, has engaged in a misleading conduct by promoting its eggs as free-range from December 2013 to October 2014.
Darling Downs Fresh Eggs has admitted to that it marketed its eggs as 'free range' when the laying hens were confined to barns and never accessed outdoors.
The doors of its barns were kept shut for most of the time and hence, laying hens could not use outdoor range.
ACCC chairman Rod Sims was quoted by The Chronicle as saying, "The issue of free range is very important to many consumers and the Australian Consumer Law requires egg producers to make truthful, and not misleading, claims.
"It's clearly misleading to claim your eggs are free range when the hens that laid the eggs didn't roam freely outdoors.
"People are willing to pay a premium for free range eggs which they believe meet ethical or welfare standards. Businesses should not be benefitting financially from misleading claims about farming practices."
The court ordered the company to take up a compliance program and publish corrective notices in all the major newspapers as well as on its website besides covering ACCC's costs.
In its defense, the company stated that it was concerned on the bio security issue as result of the outbreak of bird flu, and missed out its focus on changing the packaging from 'free range' to 'barn' or 'caged', reported the publication.
