P&M Quality Smallgoods Pty Ltd (trading as Primo Smallgoods) - s.87B undertaking

The Australian Competition and Consumer Commission (ACCC) has accepted a section 87B undertaking from P&M Quality Smallgoods Pty Ltd (trading as Primo Smallgoods) (ACN 002 781 142) (Primo).

Primo is a supplier of smallgoods. It produces a range of products including sliced meats, deli meats, salami, ham, bacon, continental sausages, frankfurts and cold cuts. Its products are sold under various labels including Mayfair, Hans and Primo Smallgoods. Its products are supplied to retailers around Australia including Coles, Woolworths and independent supermarkets.  Primo exports to 52 countries.

Between December 2009 and at least the date of this Undertaking the following Primo products were sold by retailers in packaging displaying the words ‘free range’.

The ACCC considers that the free range claim on the labelling of the abovementioned Primo products created the overall impression that the pigs from which these products were produced were farmed according to free range methods, which include, at a minimum, that pigs were able to move about freely in an outdoor paddock on most ordinary days.

The relevant pork products were sourced by Primo from producers in Denmark and were produced in accordance with the Friland Code of Conduct (Friland Code). The Friland Code requires, at a minimum, that all pigs have free access to open areas with fresh air.

However, in most cases these areas were either completely or partially roofed to accommodate for the European climate and were characterised by solid (impermeable) drained or partly slatted floors consistent with the Friland Code.

The ACCC considers that, by engaging in the conduct described above, Primo has contravened sections 18 and 29(1)(a) of the Australian Consumer Law contained in Schedule 2 of the Act.

Under the terms of the undertaking, Primo has undertaken, for a period of three years, to among other things:

• cease making the Free Range Claim in relation to pork products unless the pigs used in the production of those products have been born and raised, for the duration of their lives, in an environment where the pigs are able to move about freely in an outdoor paddock on most ordinary days;
• implement a Competition and Consumer Act Compliance Program (the Compliance Program) within 3 months of the date of this Undertaking coming into effect.
• publish a corrective notice on its website [www.primosmallgoods.com.au] within fourteen (14) days of the date of this Undertaking coming into effect, for a period of sixty (60) days.