How Do the Food Standards Operate?

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Table of Contents

• The Food Standards Code
• Food Packaging and Labelling
• Allergen Labelling
• Food Advertising and Health Claims 
• Consequences of Non-Compliance
• Key Takeaways 
• Frequently Asked Questions

If you are considering launching a food manufacturing or even a hospitality business, you must be aware of the food standards. Critical legislation to be aware of in Australia includes: 

• the Australia New Zealand Food Standards Code (the Code); 
• the Food Standards Australia New Zealand Act 1991 (FSANZ); and 
• the Food Standards Australia New Zealand Regulations 1994. 

This article will discuss the critical features of the above regulations and essential considerations food business operators should consider.

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The Food Standards Code

The ANZ Food Standards Code is a critical piece of legislation for food products. In essence, the Code governs:

• food labelling requirements;
• allergen labelling requirements;
• vitamin and mineral content; 
• food safety standards (specifically safety programs and practices); and
• productions and processing standards for meat, dairy, egg and seed sprout products.

FSANZ is the regulatory body that develops food standards for Australia and New Zealand. Some of the standards FSANZ develops are for Australia and New Zealand, while some are for Australia exclusively. In Australia, the authorities monitor businesses’ compliance with the Code for all foods in each state and territory. The Ministry for Primary Industries and Public Health Units in New Zealand monitor this. Furthermore, the Commonwealth Department of Agriculture regulates complaints regarding imported food.

Essentially, the Code consists of four sections, including:

• introduction and standards that apply to all food;
• outline of food standards;
• food safety standards; and 
• primary production standards. 

Food Packaging and Labelling

The Code outlines specific labelling and information requirements that apply to certain food products, including:

• name and description of the food;
• identification of the ‘lot’ number;
• name and Australian address of the supplier;
• list of ingredients;
• date mark;
• nutrition information panel;
• country of origin; and
• warning and advisory statements (e.g. allergens or intolerances).

Allergen Labelling

The Code was amended in 2021 to add additional requirements for allergen labelling. Food products that are required to bear a label must also have an ‘allergen statement’ if allergens are present. The allergen statement must be separate from the ingredient list and begin with the word ‘contains’ followed by the present allergens. In addition, the allergen statement must be: 

• in bold font; 
• in the same text size or greater; and 
• be distinct from any other text. 

As a matter of best practice, in addition to the above requirements, food businesses should try to make allergen statements as distinct as possible. This means using plain and simple terms and ensuring you place the information in a consistent location and format. Doing this, ensures consumers can easily find this information.

Food Advertising and Health Claims 

The critical consideration for food advertising and labelling is avoiding misleading and deceptive claims. Furthermore, ensure you can substantiate and any health claims.

The Food Standard Code requires labels and statements about food for sale not to misinform customers. It likewise prohibits businesses from making false, misleading or deceptive claims. Therefore, food labels must contain a correct name and description of the product.

You can make health claims about food products. However, the FSANZ regulates these. A health claim is defined under the Code as any claim that:

• states; 
• suggests; or 
• implies that a food or a food property has, or may have, a health effect. 

Different levels of health claims require different notification and registration processes with the FSANZ. In some cases, you may be required to provide evidence of the health benefits before you can advertise this feature of the food product.

The Code also provides that claims must not be therapeutic. This means that a claim must not refer to the:

• prevention; 
• cure; or 
• alleviation of a disease or condition.

Additionally, you cannot compare the food to another good that is represented as having a therapeutic use. For example, prescription medicine or medical device. If the food product has a therapeutic use, and you want to market it as such, you may be governed by the Therapeutic Goods Act 1989. 

Consequences of Non-Compliance

There are legal and safety consequences if your product does not comply with the Code in its packaging or production. FSANZ or the state regulators may require you to recall the product, which can be costly and time-consuming. FSANZ and regulators also have the power to issue fines of up to $275,000 for non-compliance with the Code. In addition, if the general public has already consumed the product and there are health issues, the consumer could make a claim against you for their injuries. 

Key Takeaways 

The Food Standard Code and regulations can be difficult to navigate. However, it is important to get this right and ensure you avoid expensive product recalls, liability issues, or injury claims from your customers. 

If you have any questions about food packaging and food safety in Australia, our experienced regulatory lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 0808 258 4780 or visit our membership page.

Frequently Asked Questions