Firm fined for false NZ-made claim

A second company in a month has been convicted and fined for falsely claiming its royal jelly was New Zealand made.

The product was sold in Auckland souvenir stores and the company, Shim's International Ltd, trading as Royal Deer of New Zealand, was convicted in Auckland District Court on two charges of breaching the Fair Trading Act and fined $6000.

On May 4 New Zealand Natural Care Products Ltd pleaded guilty to two charges of breaching the Fair Trading Act related to making false or misleading representations concerning the country of origin of royal jelly products. The company was fined $15,000.

"The fact that this is the second company to be fined this month for false country of origin claims on royal jelly products indicates there is a problem in this market," Commerce Commission fair trading manager Greg Allan said today.

"These traders are taking advantage of foreign tourists and misusing the New Zealand brand in the false country of origin claims."

A country of origin claim must be true, Mr Allan said.

"It is particularly the case with royal jelly that claiming the product is made in New Zealand implies that it is a higher quality product and therefore it is likely to command a premium price."

New Zealand's tourist image was harmed, and competitors marketing genuine New Zealand royal jelly had been harmed, Mr Allan said.

Royal jelly is a secretion produced by worker bees produce to feed larvae and the queen in a bee hive.

It is said to have health benefits and New Zealand royal jelly is considered to be of a higher quality than royal jelly from other parts of the world because it generally had higher levels of the active ingredient.

Mr Allan said the labels on Shim's International's royal jelly product claimed it was a "Product of New Zealand", and also pictured a kiwi with the words "Manufactured in New Zealand", and a map of New Zealand with the words "Export quality from New Zealand".

The product was in fact made up of powdered royal jelly sourced from China, and the only New Zealand ingredients were the white beeswax used as a carrying agent for the royal jelly and the purified water used to make the capsule shell.

In May 2008, Shim's International received a warning from the Commerce Commission over false country of origin claims on woollen slippers.

- NZPA

NZS