Nupak admits to false and misleading conduct

Following legal action by the Australia Competition and Consumer Commission (ACCC), packaging manufacturer Nupak Australia has admitted to falsely claiming one of its bag products as biodegradable.

Nupak has consented a declaration made by the Federal Court of Australia that it contravened sections 52 and 53 of the Trade Practices Act 1974 by making false representations and engaging in misleading or deceptive conduct.

From at least 4 May 2009, Nupak made false representations that ‘Goody’ brand plastic bags were biodegradable and compostable in accordance with the Australia Standard 4376:2006 and could be legally supplied in South Australia.

Nupak has given an undertaking to the Court to refrain from representing that ‘Goody’ brand plastics bags are biodegradable, compostable or comply with the Australia Standard – unless independent scientific testing supporting the claims is presented.

Nupak has consented to Court orders that it publish corrective notices in The Advertiser newspaper and an order to implement a Trade Practices Compliance and Education Training Program regarding its responsibilities and obligations under sections 52 and 53 of the TPA.

The matter is set down for trial in March 2011.

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