Failing to comply with the requirements of the Australia and New Zealand Food Standards Code (Code) and the Fair Trading Act 1986 (FTA ) can attract the attention of regulatory bodies, like the Ministry for Primary Industries and the Commerce Commission.
These bodies have wide-ranging powers, from requiring product recalls and sending warning letters to carrying out prosecutions. This is a situation any business wants to avoid, not only for the stress and potential loss of income involved, but also for the possible reputational damage.
Key legal requirements that food and beverage businesses in New Zealand must consider when creating a product labelling panel are set out in the Code.
Labels must also be part of, or attached to, the package, easy to read and in English. It is also important that food and beverage businesses comply with the FTA regarding labels on their products.
This means that all labels and claims must not contain information that is misleading regarding the food or beverage product, and any claims made about the product must be substantiated, which means the claims must be supported by evidence, such as a scientific study. Note that the Code also contains special rules relating to health claims made about food.
“The most common mistakes we see are that labels lack the required level of detail and that claims made or implied on the packaging aren’t substantiated with reputable evidence. It usually comes down to finding a balance between meeting legal obligations regarding labelling and the aesthetic of the packaging, so that the food or beverage is appealing to consumers,” said Kathryn Wallace, Practice Leader, at Legal Vision.
Read more from Kathryn Wallace, Practice Leader, at Legal Vision in the latest issue here
