Woolworths has won a case put against them by the Australian Competition and Consumer Commission (ACCC).
The ACCC had taken action against Woolworths over the company’s claims about its picnic products ‘W select Eco’.
The ACCC alleged the products were misleading, with the labelling reading ‘Biodegradable and Compostable’ for the duration of November 2014-November 2017.
The ACCC said the use of these labels suggested to customers that the products would biodegrade and compost when disposed of. However, the ACCC alleged that Woolworths failed to substantiate these claims.
The court found that the claims made by Woolworths were not false or misleading.
InsideFMCG said Woolworths said an independent certification had been provided and at the time there had been no mandatory standard to guide those type of claims.
ACCC Chair Rod Sims said: “We took this case because we believed the representations were false or misleading and Woolworths did not have a reasonable basis to make these claims. We are carefully considering the Court’s judgment”.
A Woolworths spokesperson said the company is “pleased with the outcome of the Federal Court judgment” InsideFMCG reported.
“We have always treated our obligations under the Australian Consumer Law very seriously, and understand how important it is that our customers can trust the environmental claims we make.”