Health supplement seller GO Healthy New Zealand Ltd has been fined $337,500 in the Auckland District Court for misleading consumers.
The company claimed their supplements were "made in New Zealand", despite the key ingredients in the majority of its products being imported, the Commerce Commission said in a statement today.
GO Healthy pleaded guilty to three charges under the Fair Trading Act, following a Commerce Commission investigation.
GO Healthy advertising was used from December 2014 until December 2018 with the phrase “New Zealand Made” to describe supplements.
The Commerce Commission says the representation implied the key ingredients in the products originated in New Zealand when, in fact, only eight out of more than 130 GO Healthy products during that time were made exclusively from ingredients originating in New Zealand.
While the production process occurred here, the ingredients inside the capsules were largely imported.
Some videos from the campaign included voice over messages and images that reinforced the impression GO Healthy’s products were made in New Zealand, from ingredients that originated from New Zealand, the Commission's statement reads.
General Manager Competition and Consumer Antonia Horrocks for the Commerce Commission says all businesses must remember that any labelling used on their products must be clear and truthful.
“Consumers are often influenced by the origin of goods when considering whether to buy something; this is particularly so for ingestible products, such as health supplements. Consumers are entitled to rely on the information provided by retailers about where a product originated. GO Healthy breached that trust by misleading its customers with its claims that its supplements were made in New Zealand. For health supplement consumers, where the ingredients have come from is important information.”