Lactalis Australia, one of the country’s largest dairy processors, has been fined AUD 59,400 by the Australian Competition and Consumer Commission (ACCC) for allegedly making false or misleading claims about the freshness of two of its liquid milk products.

The ACCC issued three infringement notices after finding that two regional milk products marketed as “fresh” contained reconstituted dairy ingredients made from milk powder, rather than being made entirely from fresh milk as consumers would reasonably expect.

Products Involved

The enforcement action relates to the following 2-litre milk products:

1. Golden North “Country Fresh” Milk
2. Ferguson Valley “WA DAIRY FRESH” Milk

According to the ACCC’s investigation:

• The Golden North “Country Fresh” product contained significant amounts of reconstituted skim milk and reconstituted lactose.
• The Ferguson Valley “WA DAIRY FRESH” product contained significant quantities of reconstituted lactose.

The regulator alleged that labeling these products as “fresh” was misleading because they included ingredients produced by reconstituting milk powder.

ACCC Enforcement Action

The ACCC’s broader review of Australia’s milk processing industry found that most dairy companies accurately label their fresh milk products. However, Lactalis’ labeling practices were considered inconsistent with consumer expectations regarding products marketed as fresh.

As a result, the company paid AUD 59,400 in statutory penalties through three infringement notices. Payment of an infringement notice is not an admission of a breach of the law, but it resolves the matter without court proceedings.

Dairy Industry Responds

The Australian Dairy Farmers (ADF) welcomed the ACCC’s action but argued that the financial penalty is too small to deter large multinational companies.

ADF President Ben Bennett said consumers deserve complete transparency about the products they purchase and stressed that trust in Australian dairy depends on accurate labeling.

The organization also noted that the issue reflects broader challenges facing Australia’s dairy industry, including:

• Declining domestic milk production.
• A shrinking number of dairy farms, particularly in Western Australia, where fewer than 100 active dairy farms remain.
• Greater reliance on substitute dairy ingredients and imported milk products due to limited local milk supply.

Separate Workplace Compliance Issue

In a separate matter, Lactalis Australia has also acknowledged employee underpayments identified during an internal review of its payroll systems.

The company stated that it has:

• Identified historical payroll errors.
• Begun corrective actions to repay affected employees.
• Self-reported the issue to the Fair Work Ombudsman.

Why This Matters

The ACCC’s action highlights the importance of truthful food labeling and maintaining consumer confidence in dairy products. While the financial penalty has sparked debate over whether it is sufficient for a multinational company, the case serves as a reminder that food businesses must ensure product descriptions accurately reflect their contents, particularly when using terms such as “fresh.”