Labels on products are important in terms of distinguishing and identifying your brand from others. In Australia, there are strict laws that your business must follow in order to sell your products. Failure to comply with the Australian Consumer Law (ACL) can result in product recall, risks to consumer health, and hefty fines and penalties.
What is the difference between ‘Australian-made’ and ‘Made in Australia’?
The difference between ‘Made in Australia’ and ‘Australian-made’ is a matter of origin and production. Both terms are used to describe products that are manufactured within the borders of Australia, but with different implications and meanings. These can be found on various products including food and beverage, clothing and footwear, home appliances, furniture and more.
‘Made in Australia’ refers to products that are manufactured in Australia but may have been designed or manufactured elsewhere. The term simply refers to the country in which the product was assembled or finished, but does not necessarily mean that the product is completely of Australian origin.
‘Australian-made’, on the other hand, refers to products that are designed, manufactured, and finished within Australia. This means that the entire production process has taken place within the country and the product is 100% Australian-made. The term is usually used to indicate that the product has a higher degree of quality and reliability, as well as encourages people to support local suppliers.
Australian Consumer Law
The ACL is a national law that protects consumers while ensuring fair trade and competition in Australia. As a general rule all product packaging and labelling must comply with the ACL to ensure there is no deceptive or misleading conduct. Failing to do so can damage your business and customers.
A few examples include:
- Compliance with applicable industry specific regulations
- Relevant safety and standards
- Food products must inform consumers of the country of origin
Legal requirements for product labelling
There are legal requirements for the use of both terms in product labelling. Under the Australian Consumer Law, businesses must ensure that their product labelling is not misleading and accurately reflects the origin and quality of their products.
The Australian Competition and Consumer Commission (ACCC) has outlined that the use of the term ‘Made in Australia’ should not be used if the product is not substantially transformed or produced in Australia.
In order to use the term ‘Australian-made’, the ACCC requires that the product must be made in Australia and at least 50% of the total cost of production must be incurred in Australia. Businesses also need to provide evidence to support their claims, and may be subject to random audits of products to ensure that their labelling is accurate. This includes both direct and indirect costs, such as labour, materials, and overheads.
Misleading and deceptive conduct may include information you remain silent about or withhold, or statements or claims you make on your labels. If you think your claims are capable of misleading or believing something that is not true, you should remove the labels from your packaging.
Both ‘Australian-made’ and ‘Made in Australia’ are terms used to describe products that are manufactured within the borders of Australia. However, there are important differences between the two terms, including the extent to which the production process takes place in Australia and the origin of the product. Businesses must be aware of the legal requirements for product labelling, including the use of the ‘Australian Made’ logo, and take care to ensure that their labelling is accurate and not misleading. This will not only help consumers make informed decisions about the products they purchase, but also protect businesses from potential legal action.
If you need help understanding and complying with your labelling and packaging requirements in Australia, please do not hesitate to contact our sister company, Legal Kitz. You can contact us by phone on 1300 988 954 or email to firstname.lastname@example.org. We offer a FREE 30-minute consultation for all your legal needs.