Dairy company made false ‘100% Pure New Zealand’ claims on products from India

The Commerce Commission said Milkio's false claims could undermine consumers and the broader dairy industry. Photo / John Stone, File

The Commerce Commission says dairy company Milkio Foods Ltd has been fined $420,000 for misleading customers with claims such as “100% Pure New Zealand” despite importing core ingredients from India.

The commission said Judge Thomas Ingram emphasised major damage the misrepresentations could do to the New Zealand dairy industry.

The Hamilton-based company’s claims could potentially be damaging to consumers and other producers who relied upon the New Zealand brand for sales of dairy products, Judge Ingram said.

The commission said Milkio pleaded guilty to 15 breaches of the Fair Trading Act for making false representations about the country-of-origin of the butter used in their ghee products, and using the FernMark logo and licence number without proper authorisation.

Commerce Commission Fair Trading general manager Vanessa Horne said it was an important case to prosecute because of the global value of New Zealand’s export brand.

”New Zealand has built an international reputation for high quality dairy products, which underpins the value of our dairy industry and exports.”

She said Milkio took advantage of this reputation to promote its own products using descriptions such as “from the clean green pasture-based dairy farms in New Zealand”.

Horne said Milkio also referred to goods “produced and manufactured in pristine New Zealand” despite some of their products using imported butter from India

“Milkio used false and incomplete information to retain approval to use the FernMark logo and licence number, which is a trusted symbol used internationally to identify products made in New Zealand,” Horne added.

”This conviction should serve as a warning to others who may be looking to falsely claim the New Zealand brand,” Horne added.

The sentencing happened at Hamilton District Court on Thursday.

The Ministry for Primary Industries referred the case to the Commerce Commission.