Lactalis fined $59,400 for misleading fresh milk labelling
Lactalis Australia has paid $59,400 in penalties for making misleading representations by labelling milk containing reconstituted ingredients as fresh.
Lactalis Australia has paid $59,400 in penalties after being issued three infringement notices for making false or misleading representations in the labelling of two of its milk products. The Australian Competition and Consumer Commission (Accc) took action following an investigation into the milk processing industry, which revealed that two specific products were marketed as fresh
despite containing significant quantities of powdered, reconstituted ingredients.
The products identified in the regulator's investigation were the Ferguson Valley WA Dairy Fresh 2L milk and the Golden North Country Fresh 2L milk. According to the ACCC, the former contained substantial amounts of reconstituted lactose, while the latter included substantial amounts of reconstituted skim milk and lactose. Following the intervention by the ACCC, the company removed the word fresh
from both labels. The payment of the penalty does not constitute an admission of a contravention of the law by Lactalis Australia.
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Regulatory Stance on Labelling Accuracy
ACCC Deputy Chair Mick Keogh stated that consumers should be able to trust that labels accurately describe the contents of everyday grocery items like milk. Most consumers would be aware milk undergoes some processing, so homogenisation [and] pasteurisation, so there may be some adjustment to the butter-fat content to meet the Australian fresh drinking milk standard,
Keogh said. But beyond that, we expect milk that's labelled 'fresh' to be largely as it comes from the cow.
The watchdog noted that while the industry largely labels products accurately, the identified misrepresentations constituted a breach of section 29(1)(a) of the Australian Consumer Law, which prohibits false or misleading conduct. The ACCC has now placed all food processors on notice, warning that companies face serious consequences for making inaccurate claims on packaging.
Industry Enforcement Context
This is not the first time Lactalis has faced regulatory scrutiny in Australia. In September 2022, the company was penalized $950,000 for breaching the Dairy Code of Conduct by failing to meet obligations during the 2020-21 milk season, following Federal Court proceedings brought by the ACCC.
Other recent enforcement actions in the Australian dairy industry include penalties for entities related to breaches of the mandatory dairy industry code:
| Entity | Penalty Amount | Reason for Action |
|---|---|---|
| Lactalis Australia | $59,400 | Misleading freshlabelling claims |
| Coles | $39,600 | Breaches of dairy industry code |
| Brownes Foods Operations | $39,600 | Breaches of dairy industry code |
The ACCC confirmed that the infringement notices issued to Lactalis will be published on the ACCC’s Infringement Notices Register.
Robert Brokenshire, president of the South Australian Dairyfarmers Association, noted that labels need to be true to title, emphasizing that farmers work to deliver high-quality, fresh milk. He stated that consumers need to feel confident in the labelling of products they purchase.
Lactalis Australia is a major dairy processor that produces a wide range of products including brands like Pauls, Harvey Fresh, Oak, Vaalia, and Ice Break. The company is owned by the multinational Lactalis Group, which is the world's largest fresh dairy company.
This development follows wider industry scrutiny regarding food labeling. The ACCC has previously investigated and taken action regarding claims involving organic status and regional provenance.
