Egg snow job costs producer $1M
A MAJOR egg producer in Western Australia has been fined a record $750,000 by the Federal Court - and ordered to pay $300,000 in costs - for misleading customers with claims its eggs were free range.
The Australian Competition and Consumer Commission brought the action against Snowdale Holdings, a supplier for Coles and Woolworths. ACCC commissioner Mick Keogh praised the penalty.
"Consumers pay a higher price for free range eggs, so when a free range claim is made, it's important that consumers are purchasing eggs laid by chickens in free range conditions,” he said.
In a statement, ACCC commissioner Mick Keogh said the penalty was the highest the court had ordered a company to pay over misleading free range egg claims.
"It reflects the seriousness of Snowdale's conduct and the importance of egg producers being truthful about marketing claims they make,” he said.
Consumer advocates are understood to be preparing a potential class action against the company.