The consumer watchdog has found the distributor of Double D eucalyptus oil falsely labelled its product as ‘Made in Australia,’ and have ordered they pay a $6 600 fine.
The Australian Competition and Consumer Commission (ACC) found the product was made from imported oil, which the company tried to pass off as Australian so they could increase costs.
"Consumers should be able to rely on the accuracy of labels, especially when they are prepared to pay a premium for products made in Australia," ACCC chairman Rod Sims said.
The consumer watchdog issued a notice stating it had reasonable grounds to believe that Club Trading & Distribution lied about the oil in its 100ml bottle when it said it came from Australia.
In reality, the oil was actually imported from China and Southern Africa.
"Australian grown eucalyptus oil is readily available to distributors and primary producers are harmed when imported oil is falsely labelled as being made in Australia," Sims said.
"Traders making made in Australia claims need to ensure that their labels are kept up to date to reflect changes in sources of supply.
"Failure to do so may lead to a contravention of the Competition and Consumer Act, infringement notices or court action.”