Nature’s Care, fronted by Kerri-Anne Kennerley, loses country of origin labelling test case to ACCC

A Chinese-owned vitamin company promoted by Kerri-Anne Kennerley has lost its bid to label its products as being Australian made — opening up a massive problem for the industry.

IN a big blow to Big Vitamin, the industry has lost its first attempt to combat tough new country of origin labelling laws.

An action filed by Chinese-owned Nature’s Care against the Australian Competition and Consumer Commission was dismissed today by Justice Nye Perram.

New labelling laws passed federal parliament last year. The ACCC, which has the job of enforcing the laws, had said putting imported active ingredients in a capsule in Australia is “unlikely to” qualify as Australian-made because it isn’t a “substantial transformation” that creates a fundamental difference between the imported oil and final product.

By contrast, making a tablet or essential oil here from raw imported ingredients gets the nod from the ACCC.

Nature’s Care — which uses Kerri-Anne Kennerley to promote its products — went to court arguing its “Fish Oil 1000 + Vitamin D3 capsules” were substantially transformed in Australia.

But the court determined they were not.

“The fish oil and vitamin D3 in the capsules is identical to the fish oil imported from Chile and the vitamin D3 imported from China,” Judge Perram said.

Putting them in a capsule didn’t change that, he said, although it did conceal the “bad flavour”.

The product is sold under a ‘Made in Australia’ kangaroo logo licence, which expires on 31 December 2018 and now won’t be renewed.

“The ACCC is pleased that the approach of the Federal Court is consistent with the guidance the ACCC has given industry about country of origin labelling,” ACCC deputy chair Mick Keogh said.

“What constitutes ‘substantial transformation’ under the law will vary depending on the product. Because of this, the ‘substantial transformation’ test can be complex and, at times, technical to apply.

We are pleased that the court has clarified this aspect of the law so that businesses can more confidently determine whether they can make country of origin claims about their products,” Mr Keogh said.

“Country of origin representations can be a powerful marketing tool for businesses, as many consumers are willing to pay extra for Australian made products. The ACCC will take action to maintain consumer confidence in labels claiming that products are Australian made.”

Nature’s Care, Complementary Medicines Australia and Ms Kennerley were contacted for comment.

Australians will spend about $2.8 billion this year on vitamins and supplements.

Originally published as Nature’s Care, fronted by Kerri-Anne Kennerley, loses country of origin labelling test case to ACCC