Costco Australia slapped with $33,000 fine over ‘misleading’ lobster labels
In the bustling world of retail, it's not unheard of for some companies to cut corners or stretch the truth to make a quick buck.
This largely competitive market has had its fair share of controversies.
Recently, Costco Australia, a known name in households across the country, was entangled in a rather fishy (or crustacean-y?) situation involving lobsters.
Imagine this. You're an avid seafood lover who prides on contributing to the local economy by purchasing homegrown products rather than imported ones.
You enter Costco, drawn in by the promise of lobsters caught off the coast of Western Australia.
You pick up a package labelled 'Kirkland Signature PREVIOUSLY FROZEN WHOLE COOKED WA LOBSTER' and 'Australian Lobster', thinking you're purchasing the freshest produce the shores of Aussie land have to offer.
Unfortunately, in this case, all that glitters is not gold.
The Australian Competition & Consumer Commission (ACCC) has slapped Costco Australia with a hefty $33,000 fine after it was found that these said lobsters were not as 'homegrown' as they claimed to be.
It turns out; these sea-dwelling delicacies were actually imports from Canada. A shocking revelation, isn't it?
What's more, the mislabelled products cleverly sported the Australian-made kangaroo logo and a full bar chart indicating exclusivity.
'Many shoppers pay a premium to purchase Australian seafood rather than imported products, which makes the accuracy of the labelling a crucial part of enabling consumers to make an informed choice,' ACCC Deputy Chair Mick Keogh said in a statement.
If you feel deceived, you aren't alone.
Despite being a global retail giant, operating in 13 countries with 15 warehouses in Australia, Keogh said Costco dropped the ball with their ‘local lobster’ claim. They sold two packages of lobster under false pretence.
As a result, Costco is in hot water, receiving two infringement notices for false or misleading labelling and failure to comply with the Country of Origin Food Labelling Information Standard.
This, in a nutshell, is a blatant breach of Australian Consumer Law.
'While a small number of consumers were impacted in this instance, this conduct involved a large and sophisticated business,' said Mr Keogh.
If you're out there reading this cautionary tale, remember this: education and vigilance are key.
Always stay up-to-date with consumer rights knowledge, and don't hesitate to question 'too good to be true' claims, especially when they involve your hard-earned money and taste buds.
There's a lesson to be learnt at the end of this crustacean saga: Stay informed, stay sceptical, and most of all, remain committed to supporting genuine local producers.
So, next time you're in the mood for seafood, double-check those labels before diving in. Happy shopping!
Members, what are your thoughts on the situation involving Costco Australia and their mislabeling of lobster products?
This largely competitive market has had its fair share of controversies.
Recently, Costco Australia, a known name in households across the country, was entangled in a rather fishy (or crustacean-y?) situation involving lobsters.
Imagine this. You're an avid seafood lover who prides on contributing to the local economy by purchasing homegrown products rather than imported ones.
You enter Costco, drawn in by the promise of lobsters caught off the coast of Western Australia.
You pick up a package labelled 'Kirkland Signature PREVIOUSLY FROZEN WHOLE COOKED WA LOBSTER' and 'Australian Lobster', thinking you're purchasing the freshest produce the shores of Aussie land have to offer.
Unfortunately, in this case, all that glitters is not gold.
The Australian Competition & Consumer Commission (ACCC) has slapped Costco Australia with a hefty $33,000 fine after it was found that these said lobsters were not as 'homegrown' as they claimed to be.
It turns out; these sea-dwelling delicacies were actually imports from Canada. A shocking revelation, isn't it?
What's more, the mislabelled products cleverly sported the Australian-made kangaroo logo and a full bar chart indicating exclusivity.
'Many shoppers pay a premium to purchase Australian seafood rather than imported products, which makes the accuracy of the labelling a crucial part of enabling consumers to make an informed choice,' ACCC Deputy Chair Mick Keogh said in a statement.
If you feel deceived, you aren't alone.
Despite being a global retail giant, operating in 13 countries with 15 warehouses in Australia, Keogh said Costco dropped the ball with their ‘local lobster’ claim. They sold two packages of lobster under false pretence.
As a result, Costco is in hot water, receiving two infringement notices for false or misleading labelling and failure to comply with the Country of Origin Food Labelling Information Standard.
This, in a nutshell, is a blatant breach of Australian Consumer Law.
'While a small number of consumers were impacted in this instance, this conduct involved a large and sophisticated business,' said Mr Keogh.
Key Takeaways
- Costco Australia paid penalties totalling $33,000 for misleading labelling on lobster products which falsely claimed to be caught locally.
- The mislabelled seafood was actually imported from Canada, a fact flagged by the Australian Competition & Consumer Commission (ACCC).
- The products were sold in Costco's Casuarina warehouse in Western Australia using the Australian-made kangaroo logo and other misleading labels implying the lobsters were Australian.
- ACCC Deputy Chair Mick Keogh emphasised the importance of accurate labelling, stating that misleading labelling breaches Australian Consumer Law.
If you're out there reading this cautionary tale, remember this: education and vigilance are key.
Always stay up-to-date with consumer rights knowledge, and don't hesitate to question 'too good to be true' claims, especially when they involve your hard-earned money and taste buds.
There's a lesson to be learnt at the end of this crustacean saga: Stay informed, stay sceptical, and most of all, remain committed to supporting genuine local producers.
So, next time you're in the mood for seafood, double-check those labels before diving in. Happy shopping!
Members, what are your thoughts on the situation involving Costco Australia and their mislabeling of lobster products?