Owning or starting your food business is exciting and challenging. To avoid any challenges with authorities, it is essential to have the correct steps for yourself and your employees when selling food. If you operate a food business in New South Wales, whether this is for the handling of food or manufacturing and packaging of food, you should be aware of your legal responsibilities under the state rules and regulations. It is important to note that food service and preparation is regulated differently in each state. This article will specifically discuss the obligations of food businesses in NSW.
What is the Food Act?
The Food Act 2003 (NSW) (the Food Act) regulates how food businesses manage and sell their food products. Australia highly regulates food to ensure it is high quality and suitable for human consumption. Regulations are also put in place for food businesses to prevent conduct that might mislead customers.
In NSW, the primary enforcer of the Food Act is the NSW Food Authority. However, this organisation often works in conjunction with local councils and other government bodies.
What are the Food Standards?
In Australia, the food safety standards and labelling requirements are governed by the:
- Australia New Zealand Food Standards Code (the Code);
- Food Standards Australia New Zealand Act 1991; and
- Food Standards Australia New Zealand Regulations 1994.
The Code sets out several packaging, labelling and advertising requirements for food products.
Food Standards Australia New Zealand (FSANZ) is the authority that develops food standards for Australia and New Zealand. The Food Act also incorporates the standards in the FSANZ.
Continue reading this article below the formWhat is a Food Business?
A food business, for the purposes of the Food Act, is any business, enterprise or activity that involves:
- the handling of food intended for sale; or
- the sale of food.
This definition applies regardless of whether the activity concerned is of a commercial, charitable or community nature or whether it involves the handling or sale of food on one occasion only. This will include the following businesses:
- cafes and restaurants;
- commercial kitchens;
- catering services;
- manufacture and production of food products; and
- packaging of food products.
These are just examples of different types of food businesses, not an exhaustive list. Before launching a food business, you should contact the NSW Food Authority and your local council to ensure you meet the relevant planning and notice requirements.
Obligations Under the Food Act
At a minimum, you should follow correct safety procedures and legal requirements to service your customers properly. Taking the necessary steps and following the correct procedure will ensure your food business maintains its reputation. Doing so also helps you to avoid penalties issued by food authorities for breaching the Food Act.
The Food Act covers actions that would constitute an offence by food businesses. For example, it is an offence to sell food that misleads consumers. Therefore, selling contaminated or falsely described food is an offence. It also covers what happens if a food business gives false information or has items that authorised officers seize.
Many food businesses must appoint a food safety supervisor (FSS) with relevant qualifications. You may also need a food licence if your business:
- processes raw foods, such as eggs, dairy, meat and seafood; or
- produces food for vulnerable persons.
How Can I Protect My Food Business?
Protecting your food business and ensuring you do not breach the Food Act is important. To do so, you can follow these steps:
- ensure your premises are clean and all of your vehicles and equipment are clean and in proper working order;
- ensure you comply with any notices that require you to fix your premises;
- ensuring product packaging and notices meet the allergy labelling requirements;
- comply with the Food Standards Code;
- label food correctly and honestly;
- developing and implementing policies for product recalls;
- have a policy that carefully monitors how employees handle food and machinery; and
- pay any penalties on time and fixing any faults as soon as possible.
Offences Related to Food
There are serious offences that every food business must take steps to prevent.
Before buying a business, it is important to undertake due diligence, to verify the information supplied by the seller. This guide will walk you through the due diligence process.
Defences to Breaches
Occasionally, you may breach the Food Act even after taking all necessary precautions. In this situation, the Food Act offers some defences, including that you:
- will be exporting the food;
- took all reasonable precautions and exercised due diligence;
- acted on information supplied by another person; or
- made a genuine mistake.
The Food Act monitors food safety, licences food businesses, monitors complaints, investigates food hygiene and labels complaints.
Failure to Comply
If you do not comply with the Food Act, you may face the following consequences:
- verbal warnings;
- authorities may send you warning letters and give you a deadline to respond;
- an improvement notice considering issues like cleaning, repair or replacement of equipment;
- a prevention order that prevents you from using certain appliances or preventing your business from operating at all;
- your business may be flagged on an authority website warning potential customers that you don’t comply with the Food Act;
- your business may be required to prove why your food licence should not be suspended;
- suspension or cancellation of your licence; and
- fines or other penalties.
The costs of not complying with laws relating to food businesses may also severely impact customers. For example, if your food is contaminated or doesn’t have accurate descriptions, customers may suffer and leave negative reviews of your business. This will ultimately harm the goodwill and reputation of your business. To ensure customers return and feel safe purchasing from your business, ensure your business complies with all requirements. compliance.
Key Takeaways
Food businesses are regulated differently in each state. The obligations of food businesses are expansive and cover how food preparation, serving, packaging and marketing. Some businesses have licensing and notice requirements. If you unintentionally break the rules, you should try to work with the regulator to resolve the issue.
If you need help complying with the Food Act, our experienced consumer lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
The Food Act 2003 (NSW) regulates how food businesses manage and sell their food products.
In Australia, the food safety standards and labelling requirements are governed by the Australia New Zealand Food Standards Code (the Code), the Food Standards Australia New Zealand Act 1991 and the Food Standards Australia New Zealand Regulations 1994.
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