Arnott’s told to ‘shape up’ on ad claims

Published at Nov 23, 2015, in Features

The Australian Competition and Consumer Commission has found claims made by Arnott’s to be half-baked, with the Shapes-maker subsequently fried.

The consumer watchdog levelled out penalties amounting to $51,000 for making misleading claims about the fat content of Shapes, in particular its ‘Light and Crispy’ product.

The company had claimed on its packaging that the Light and Crispy product contained 75% less saturated fat without specifying what the point of comparison was.

The offending packaging. Courtesy of the ACCC.

The offending packaging. Courtesy of the ACCC.

The ACCC found that it would be reasonable to assume on the part of the consumer that the claim was against the regular variety of shapes.

However, in teeny-weeny print on packaging it was revealed that the comparison was with potato chips cooked in 100% palm oil.

When it ran the numbers, the watchdog found that the Light and Crispy variety only had 60% less saturated fat than the regular version.

“Consumers should be able to trust the claims that businesses make to sell their products,” ACCC chairman Rod Simms said.

“Small print disclaimers cannot correct false or misleading representations which are made in a prominent way in advertising or packaging.”

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.