It’s simply unAustralian
We recently wrote about the proliferation of Chinese deception of foreign investors and the regulator’s inability to do anything about it other than delist the companies, which they won’t do, presumably to maintain a healthy trading relationship.
In a country where so much depends on respect, it’s hilarious that even in trade, some Chinese operators do so little to earn it.
We maintain our general opinion that all investors should steer clear of buying shares in any Australian or US-listed Chinese company.
ACCC acts on Chinese made ‘Aussie Beer’
30 March 2015
“The Independent Liquor Group (ILG) has paid a penalty of $10,200 following the issue of an infringement notice by the Australian Competition and Consumer Commission in relation to its “Aussie Beer” product.
“From March 2014 to August 2014, ILG supplied a product named “Aussie Beer”, with labelling that incorporated the statement “100% owned” within a map of Australia and the statement “Australia’s finest malt”. The packaging also featured green and gold colours, which are colours closely associated with Australian sporting teams.
“The ACCC considered that, by its packaging and labelling, ILG represented that its “Aussie Beer” product was a product made in Australia when in fact the product was made in China.
“The infringement notice was issued because the ACCC had reasonable grounds to believe that ILG had made false or misleading representations about the country of origin of the “Aussie Beer” product, in contravention of the Australian Consumer Law (ACL).
“Country of origin representations, particularly those designed to grab the eye of the consumer by using well known symbols, colours, or slogans, must be truthful,” ACCC Chairman Rod Sims said.
“Consumers will often place a premium on the provenance of a product, but are unable to check the accuracy of those claims. This is particularly the case with Australian made products which encourage consumers to support local industries. Consumers are entitled to expect that prominent representations made on packaging are accurate without having to check for disclosures in the fine print.”
“The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protections of the ACL.
“The infringement notice issued to ILG is available on the infringement notices register.”
Roger Montgomery is the founder and Chief Investment Officer of Montgomery Investment Management. To invest with Montgomery, find out more.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Chris B
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I bought some Chinese beer called Pearl River. I hope they didn’t get the water to make the beer from Pearl River otherwise. I don’t want mercury in my bloodstream.
Chris
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Given that the State reports that 60% of China’s underground water resources are so polluted that they cannot be used (the figure is probably much higher), I personally wouldn’t even wash my feet in this !
(given that water is one of the key ingredients of beer and certainly a comparable Rheinheitsgebot would not be in effect…who knows where it came from and what else is in it ?!)
Random Ash
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I’ve bought this beer myself. The friends and I that bought and shared it instantly picked up on the gimmicky, over the top ‘aussie’ look, which got our suspicions going. The $20-something price tag also set some alarm bells off. Where it was made was one of the first things we checked. And even then, we still bought it, just to give it a try.
I feel like the consumer needs to get some whit about them and start looking after themselves a bit more instead of expecting absolutely everything to be pre-screened to the nth degree (how would progress occur?!).
Just like the ‘Chinese Raspberries’ debacle. People complaining that the country of origin is not clear enough – it’s written on the packet, just like every other food item in existence. If country of origin is an issue for you, how about YOU go and check where it is made by reading the packet. And if you incorrectly assume EVERYTHING is made in Australia, then geez, you must live in a fluffy cotton wool bubble. (The fact that they were laced with something is another issue).
Roger Montgomery
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ThAnks RA. Good points
John E
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Fact – many products just state “Made from local and imported ingredients”. Such as the berries.
There is NO specific country of origin on the packet.
So now when I see this, I feel the companies are hiding the origin due to reputation risk.
I have to assume that the products are made in China or other countries where hygiene standards are low and poor. Which means an automatic boycott of the item from me.
Roger Montgomery
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That’s the Precautionary Principle in action. And it works!
bill-wilson
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Had they used the Buy Australian Logo they would have put their Australian credentials on open display for all to see.
Its the Logo that the Government wishes they could give us but are forbidden from doing so.
An Australian Authenticity Logo and Truth in Labelling all in one since 2012.
Roger Montgomery
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Thanks Bill. Good idea.