ACCC launches food labelling inquiry following Four Corners investigation

The Australian Competition and Consumer Commission (ACCC) has launched an inquiry into allegations of misleading food labelling and packaging.

Extensive laboratory testing of hundreds of food items, conducted for Four Corners, found some products had been adulterated or did not match their label.

Assistant Competition Minister Andrew Leigh has welcomed the inquiry, saying "Australians shouldn't be duped by misleading labels".

Australia's consumer watchdog has launched an inquiry into allegations of misleading conduct after a major Four Corners investigation examining food fraud.

Four Corners's eight-month investigation collated thousands of food import inspection records, national food recalls, state regulatory records and international food fraud intelligence.

Forensic testing conducted by laboratory Source Certain revealed dozens of tomato paste products that claimed to be from Australia or Italy were consistent with Chinese-grown tomatoes.

About half of the products that failed testing were sourced from Xinjiang in China, an area known for its use of forced labour.

The testing also revealed some seafood supplied to the food services sector and promoted as Australian, such as white fish and prawns, was consistent with being sourced from Vietnam.

It found some caged eggs marketed as "cage-free" did not match those claims, and it detected signs of adulteration in three brands of turmeric, including lead chromate and iron oxide.

The Australian Competition and Consumer Commission (ACCC) has launched a preliminary investigation into the claims raised by Four Corners regarding allegations of potentially misleading consumer conduct.

"It is important that consumers can be confident that any claims made on food labelling, packaging and in advertisements are truthful, accurate and not misleading," ACCC Commissioner Luke Woodward said in a statement.

"We know that consumers may be guided by non-price factors, including claims about the country of origin or supply chain, when choosing which food products to buy."

Labor frontbencher says Australians 'shouldn't be duped'

Assistant Minister for Competition Andrew Leigh said he commended the watchdog for launching "important investigatory action".

"The ACCC has shown a strong willingness to enforce Australia's consumer laws in the interests of Australian consumers," Mr Leigh said on Friday.

"Australians shouldn't be duped by misleading labels.

" Australians should be able to walk into a store and know that what it says on the tin is accurate. "

Responsibility for policing Australia's food system is spread across multiple agencies.

Food regulator Food Standards Australia New Zealand (FSANZ) sets the standards, state and territory regulators and councils enforce them, the federal agriculture department checks imported food, and the ACCC can take action over false or misleading claims under consumer law.