In two recent cases, the Australian Competition and Consumer
Commission (ACCC) has made it very clear that misleading product
descriptions will result in fines and orders for remedial
action.
Under the Australian Consumer Law (ACL), a person must not, in
trade or commerce, engage in conduct that is misleading or
deceptive or is likely to mislead or deceive. A person is also
prohibited from making false or misleading representations relating
to the standard or quality of goods, the place or origin of goods
or the manufacturing process, characteristics or suitability for
purpose of goods.
Universal Pharmaceuticals Pty Ltd ("UP") was obliged
to enter into a court-enforceable undertaking to remove two product
claims from its "Wealthy Health" website relating to its
product, "Wealthy Health Organic Squalene 1000 mg with Vitamin
E". The relevant claims were that the product ingredients
were:
