Question
The brand Georgia's Organic Breakfast Ltd dominates the Australian retailbreakfast market with a particular best seller, its granola (a type of breakfast cereal), in all
The brand "Georgia's Organic Breakfast Ltd" dominates the Australian retailbreakfast market with a particular best seller, its granola (a type of breakfast cereal), in all major supermarkets and retailers.The business advertises through many channels including TV, radio and the internet.Its tag line is:
"Georgia's organic granola uses 100% natural ingredients including Australian farm grown nuts, berries, grains and honey:It will make your day".
Another small business "Ursula's Natural Granola" is a small batch natural foods business operating as a sole trader and producer in rural Victoria sourcing its product from local farmers in the Victorian high country.Ursula's Natural Granola has a loyal following and growing customer base.Not only do they sell their product at the local farmers' market in Bright, but they also have a growing online business selling genuine Australian granola around the globe.Demand for Ursula's Granola is rising fast.
Zac, a food technician and friend of Ursula's recently tasted a sample of Georgia's product to compare it to Ursula's own product.Zac explains to Ursula "it is just not possible for Georgia's product to be pure, natural granola, they put something else in there:and it isn't natural berries and grains".He encourages Ursula to send a sample to the CSIRO (Commonwealth Scientific and Industrial Research Organisation) in Canberra to have it tested.The test results show that Georgia's product only contains about 30% natural berries and grains with no honey but instead a cheap imported syrup.
Ursula now seeks your advice to determine whether Georgia's Organic Breakfasthas breached Australian Consumer Law. Refer to S18 of the Australian Consumer Law as part of your response. Use case references to support your answer.
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