Australian Agency Fines Olive Oil Maker Over “Extra Virgin” Claims

The Australian Competition and Consumer Commission (ACCC) has fined a
Kensington, South Australia, olive oil manufacturer a total of A$13,200 for
marketing its products as “extra virgin” even though they purportedly did not
meet international grade standards. According to a May 18, 2012, ACCC press
release, The Big Olive Company Pty Ltd over a four-month period “supplied
nearly three thousand 500ml bottles of ‘Oz Olio’ oil with a representation of
extra virgin olive oil on the front label.” The commission has since alleged that
some of these oils contained “more free fatty acids than permitted by olive
oil trade standards,” indicating that the “olives used to make the oil were old,
damaged or otherwise of poor quality and the oil was not extra virgin olive oil
at the time of bottling.”

ACCC apparently decided to test four imported oils and three domestic labels
after receiving complaints from the Australian Olive Association (AOA) about
lower-quality oils being dubbed “extra virgin.” Although the other product
samples reportedly met voluntary standards for extra virgin oil, the commission
has pledged to continue working with AOA to address its “broader
concerns” about olive oil claims and to “ensure greater clarity in labeling.”

“The term ‘extra virgin’ is widely understood by consumers to mean a
premium product. Consumers should be able to trust that what’s on the label
is what’s in the bottle,” said ACCC Chair Rod Sims. “Misleading ‘extra virgin’
claims trick consumers into paying a premium for an inferior product. Traders
who abuse the trust of Australian consumers in this way expose themselves to
enforcement action.”