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Commerce Commission investigates milk

Tuesday 27th May 2003

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The Commerce Commission is investigating allegations by the Fonterra Co-operative Group Limited that claims made by A2 Corporation about the dangers of A1 milk are false and misleading and that A2 Corporation's products contain more of the A1 milk than is disclosed on the product labels.

Director of Fair Trading Deborah Battell said the Commission is concerned that consumers must be able to make choices about the milk they purchase based on accurate information.

The Commission notes that the New Zealand Food Safety Authority is investigating aspects of these allegations covered by the Food Act and is researching scientific evidence on the A1/A2 milk debate.

The Commission also notes that A2 Corporation has filed High Court action against Fonterra under the Fair Trading Act, claiming that it suppressed research relating to the alleged potential harmful effects of A1 milk, and seeking a ruling that Fonterra should place health warnings on standard milk.

On a different matter, the Commission is investigating Fonterra under the Dairy Industry Restructuring Act, about the supply of A2 milk to A2 Corporation.

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