June 27, 2007

Australian egg marketer fined for falsely labeling eggs as organic

An Australian egg marketer has been fined AUS$270,000 (US$228,000) for falsely labeling its eggs organic.

GO Drew Pty Ltd has admitted to the ACCC (Australian Competition and Consumer Commission) that it had deliberately substituted other products to its free-range organic products over an extended period as it failed to keep up with organic egg production.

The products concerned were sold as being certified organic by the National Association for Sustainable Agriculture Australia (NASAA).

The Organic Federation of Australia would receive a substantial portion of the fine to set up a national standard for organic and biodynamic produce.

NASAA would receive the rest of the proceeds from the fine to enhance its ability to certify and monitor organic produce.

ACCC chairman Graeme Samuel noted that there is strong demand for organically produced products and farmers are moving to provide for that demand.

He added that the development of a national standard would benefit both consumers and producers by enhancing the opportunity for informed choice.