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Hi

The following refers to a Codex quality wheat-starch based product.[
I've deleted the name of the company. ]

Graeme
NZ


"Gluten free" bread mix contained gluten.

`Media Release 1999/59

As part of a settlement with the Commerce Commission  [ X Limited ] will
relabel its "Gluten Free Bread Mix" and write to all its clients because
the mix contains gluten.

Commission Fair Trading Manager Rachel Leamy said that this
investigation highlights an issue all food manufacturers and retailers
must be aware of - [ X Limited's ] labelling complied with the Food
Regulations but, in the Commission's view, still risked breaching the
Fair Trading Act.

In a High Court case against the Fresh Juice Company, Justice Grieg
stated: "It is not an answer to rely on compliance with the Food
Regulations".

The Act prohibits false claims that goods are of a particular
composition. Labelling food as "gluten free" when it contains gluten
risks breaching the Act.

Ms Leamy said [ X Ltd ] co-operated willingly with the Commission as
soon as the Commission contacted it.

In addition to relabelling and contacting clients, the settlement
includes signed undertakings requiring independent testing of any bread
mix described as "gluten free" and publicity of the settlement. It also
includes an acknowledgement that the Commission can take court action if
the settlement is not honoured.

Food promotion is one of the key industries the Commission is focusing
on.

"It is a multi-billion dollar a year industry," Ms Leamy said. "Food is
one of the most basic necessities - everyone must eat.

"A promoter can make huge gains over competitors by using false or
misleading claims and can also cause serious harm to consumers and,
because of the size of the market, to the whole economy."

In this case, "Gluten Free Bread Mix" was sold to hospital pharmacies
and other retailers. Due to medical conditions, some people cannot
consume any gluten and others can consume only minute amounts.


Background

Section 13(a) of the Fair Trading Act prohibits claims that: "falsely
represent that goods are of a particular ... composition".

The Commission has previously taken action against false or misleading
claims about the amounts of fat in meat, the contents of fruit juice and
the labelling of fish.

Media contact: Fair Trading Manager Rachel Leamy
Phone work (04) 498 0908

Communications Officer Vincent Cholewa
Phone work (04) 498 0920

Commission media releases can be viewed on its web site
www.comcom.govt.nz