Beauty companies admit mislabelling product, Mis-Using Australian Made Logo
Two small cosmetic manufacturing companies, Natural Beauty Enterprise Pty Ltd and Natural Green Pty Ltd, have admitted supplying cosmetic products which breached the mandatory information standard.
They also admitted using the Australian Made logo without the permission of Australian Made Campaign Limited.
Natural Beauty Enterprise Pty Ltd supplied Pearl Cream with Vitamin E –100g product while Natural Green Pty Ltd supplied 24 Hour Time Release Cream with Placenta & Vitamin E – 80g.
The products were detected as breaching the standard by Australian Competition and Consumer Commission staff during regular safety surveys. When the issues were brought to the two companies' attention, they acknowledged the conduct and cooperated fully with the ACCC.
In welcoming the remedial action, ACCC Chairman, Mr Graeme Samuel, said truth in advertising is important.
"Importers, suppliers and retailers of cosmetics must be vigilant to ensure products they sell comply with the cosmetics standard which mandates that ingredients be listed on the product, its packaging or on display.
"Allergic reactions to some ingredients can be very severe for some people. Correct labelling allows consumers to identify and avoid problem ingredients," Mr Samuel said.
Natural Beauty Enterprise Pty Ltd and Natural Green Pty Ltd have since obtained approval from the AMCL to use the Australian Made logo.
"Corporations falsely using the Australian Made logo can gain significant commercial benefits by misleading consumers into believing the products had received approvals, endorsements or certification, when in fact they had not."
Natural Beauty Enterprise Pty Ltd and Natural Green Pty Ltd have given the ACCC court-enforceable undertakings that they will:
- not supply cosmetics products which do not comply with the cosmetics standard or applicable mandatory product safety standards
- not use or depict the Australian Made logo without certification from the AMCL
- implement a trade practices law training program, and
- maintain a corporate complaints handling system.
Natural Beauty Enterprise Pty Ltd and Natural Green Pty Ltd, admitted they contravened sections 65D, 52 and 53(c) of the Trade Practices Act 1974. Section 65D of the Act, prohibits a corporation from supplying goods that do not comply with the requirements of a prescribed consumer product information standard. Section 52 deals with misleading or deceptive conduct and s53(c) relates to the making of false representations regarding, among other things, that goods have a certain sponsorship or approval.
Ms Lin Enright, Director, Media Unit, (02) 6243 1108 or 0414 613 520
Release # NR 028/09
Infocentre 1300 302 502