Uncle Tobys fined $32,000 for misleading customers with claims about the protein in their 'superfood' porridge 

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Oats are good for you, but only high in protein when made with milk, a fact Uncle Tobys products only mentioned in fine print.

Thursday saw Cereal Partners Australia Pty Ltd (CPA), the manufacturer and distributor of Uncle Tobys Oats pay $32 400 after the ACCC found information on the box to be misleading.

The action followed three infringement notices to the Nestle-owned company whose packaging claimed that Uncle Tobys 'Traditional Oats' and Uncle Tobys 'Quick Sachets' oats were naturally high in protein. 

Fined: Uncle Tobys paid $32 400 after the ACCC alleged that they had misled their consumers by advertising that oats are naturally high in protein.

Both packages contained this disclaimer 'when prepared with [1/2 or 2/3] cup of skim milk', however it was found that this was dis-proportionate to the health claims made on the packaging. 

'Consumers should be able to purchase food products based on accurate health and composition claims. 

While the ACCC acknowledges that oats have many health benefits, on their own they are not high in protein, contrary to the representations made about these Uncle Tobys products,' ACCC Chairman Rod Sims said.

'Business should be aware that a fine print disclaimer is insufficient to correct or qualify a prominent representation on packaging or in advertising that is false or misleading.'

'Truth in advertising, particularly where misleading claims are made by large businesses, is a priority enforcement area for the ACCC,' Mr Sims said. 

The same health benefits were also highlighted in a television commercial which contained a similar fine-print disclaimer in relation to the products. 

Add milk: The packaging on both products have a disclaimer which states that it is high in protein when prepared with skim milk.

The ACCC found that CPA made false or misleading representations by combining the words 'natural source'/'naturally rich', 'protein' and 'superfood' in the statements on the packaging and in a television commercial; and by presenting the word 'protein' prominently in the center of the front of the packet in a bright colour and in large font sizes, when this is not the case.

Nestle said that it was never its intention to mislead consumers about the level of protein in Uncle Tobys Oats.

'The protein claims, made for Uncle Tobys Traditional Oats and Quick Sachets, were based on the level of protein in oats prepared with skim milk, reflecting consumer research showing that this is the way that Uncle Tobys oats are most commonly prepared,' a spokesperson said.

'Preparation with skim milk was referenced in qualifiers both in the advertising and on the front of the packs.'

Nestle says that they have acknowledged the ACCC's view that some people may misinterpret the claims, and has stopped using them.

'The television advertisements stopped running before the infringement notices were received and the packaging change is nearing completion with new packaging currently appearing on shelves,' the Nestle spokesperson said.

According to the whole-grains council oats have many benefits including increasing appetite-control hormones, improving immune system defences and lower bad cholesterol. It has also been linked to reducing Type 2 Diabetes, reducing the risk of asthma in children and boosting the nutrition profile of gluten-free diets.

Companies can pay an infringement notice without admitting that they have broken Australian Consumer Law.

The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain laws.

Earlier this week Arnott's Biscuits paid $51,000 in penalties for misleading claims on the packaging of certain Shapes products that suggested the contents had 75 percent less saturated fats.

The Australian Competition and Consumer Commission found Shapes Light & Crispy, which advertises on its packaging to have '75 percent less saturated fat', actually contained about 60 percent less saturated fat than original Shapes.

The company was found to be comparing Shapes Light & Crispy to potato chips cooked in 100 percent palm oil, instead of regular Shapes biscuits.

Arnott's Biscuits has paid $51,000 in penalties for misleading claims on the packaging of its Shapes Light & Crispy products that suggested the contents had 75 percent less saturated fats

Despite the fact the company clarified the saturated fat contents in a fine print at the bottom of the packs, ACCC chairman Rod Sims said it was still misleading because only 20 percent of potato chips sold in Australia are cooked in palm oil.

'Consumers should be able to trust the claims that businesses make to sell their products. Small print disclaimers cannot correct false or misleading representations which are made in a prominent way in advertising or on packaging,' he said.

'Businesses must ensure that any comparison claims they make are accurate and based on meaningful comparisons for consumers. This is particularly the case regarding claims that involve healthier eating.' 

The ACCC issued five infringement notices to Arnott's because it had reasonable grounds to believe that Arnott's made a false or misleading representation about the composition of Shapes Light & Crispy

The claim appeared on packaging between October 2014 and July this year on four Light & Crispy products, including sea salt flavours and the honey BBQ chicken. 

The ACCC issued five infringement notices to Arnott's because it had reasonable grounds to believe that Arnott's made a false or misleading representation about the composition of Shapes Light & Crispy, in breach of the Australian Consumer Law. 

Arnott's has provided a court enforceable undertaking to the ACCC that it will not engage in similar conduct for a period of three years. 

It will also publish a corrective notice on its website and in the nationally published Foodmagazine. 

Arnott's Biscuits was found to be comparing Shapes Light & Crispy to potato chips cooked in 100 percent palm oil, instead of regular Shapes biscuits