Food producers, alternative therapy providers and multi-level marketing companies that make claims about the potential for their products to address allergies, risk ACCC action if these claims are found to be misleading or deceptive.
On 12 October 2010, the ACCC publicly stated that it had instituted litigation in the Federal Court in Melbourne against five companies and four individuals for alleged false and misleading claims about allergy treatments.
The respondents are:
- Renew You Centre For Wellbeing & Longevity Pty Ltd
- Newlife Publishing And Marketing Pty Ltd
- Bojan Schianetz
- Dzung Kieu Price
- Willesee Healthcare Pty Ltd
- Theoliza Pty Ltd
- Theta Line Pty Ltd
- Maria Teresa Colosimo
- Sophie Lee-Anne Georgonicas
The respondents are alleged to have represented that they could test for and identify a substance to which a person is allergic and successfully treat, cure or eliminate a person's allergy.
Renew You, Newlife, Schianetz and Price are also alleged to have falsely and misleadingly represented that they could teach parents and carers of children to test for and identify a substance to which a child is allergic and to treat, cure or eliminate successfully a child's allergy.
These proceedings appear to be part of an increased focus by the ACCC on allergy claims. In 2009, the ACCC took action against Allergy Pathway Pty Ltd (formerly known as Advanced Allergy Elimination Pty Ltd) for engaging in false, misleading and deceptive conduct by representing that:
- it could test for and identify an allergen for a person and/or a substance to which a person is allergic, when it could not;
- it could cure or eliminate virtually all allergies or allergic reactions, when it could not;
- it could successfully treat a person's allergies or allergic reactions, when it could not; and
- its treatment was safe and/or low risk and after treatment it was safe for a person to have contact with the substance or allergen to which the person had an adverse reaction, when there were risks associated with the treatment for persons with certain allergies including food allergies.
The latest proceedings serve as a reminder that any claims regarding the beneficial effects of products on allergies must be accurate and capable of being substantiated by the weight of current, credible scientific evidence. The ACCC's increased focus on allergy claims is relevant not only for those businesses who offer allergy testing services but also to food manufacturers and others who make claims about allergies in connection with their particular products.
It is also important for businesses including food producers, alternative therapy providers and multi-level marketing companies to remember the other laws that apply, in addition to the Trade Practices Act, when making claims made about the potential for products to address allergies. For example, food laws will also need to be considered before making allergy claims in relation to foods. The relevant State and Territory Food Authorities are closely scrutinising labels and marketing materials relating to food products to ensure that no health claims are made. This includes health claims relating to the potential for particular products to prevent or cure allergies.
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