Food giant Heinz has been fined $2.25 million for misleading consumers by claiming one of its snacks, marketed for toddlers, was beneficial for young children. Justice Richard White also ordered the company to set up a consumer protection compliance program.

In a recent hearing, counsel for the ACCC, Tom Duggan, said the penalty imposed had to be sufficient to act as a deterrent against similar conduct by the company and others operating in the food industry. He argued the company’s conduct in representations on the packaging of its Little Kids Shredz was “egregious” because of the potential implications for the diet and oral health of young children.

But Michael O’Brien, for Heinz, said that while the company had made an error, it did not intend to mislead.

In a judgement in March, Justice Richard White found the prominent statements on the packaging, that the Shredz snacks comprised 99% fruit and vegetables, together with the pictures of the fruit and vegetables, conjured impressions of nutritiousness and health.

“I am satisfied that each of the Heinz nutritionists ought to have known that a representation that a product containing approximately two-thirds sugar was beneficial to the health of children aged one to three years was misleading,” he said.

The Shredz products were a dehydrated snack made from 99% fruit and vegetable ingredients and did not contain any preservatives, artificial colours or flavours but had a high sugar content. More than one million were sold before the products were pulled from shelves in May 2016.

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