Commission reaches preliminary view on infant formula

Commerce Commission reaches preliminary view to authorise restrictions on the marketing of infant formula

The Commerce Commission has reached a preliminary view that it should allow members of the Infant Nutrition Council (INC) to restrict their advertising and marketing of infant formula for children under six months of age.

The INC has asked for authorisation of its Code of Practice, which places restrictions on the advertising and marketing of infant formula by INC members. The Commission’s preliminary view is that, while the Code of Practice may lessen competition, the reduction in competition is likely to be outweighed by the public benefits.

“Restrictions on marketing and advertising activities typically limit the amount of information available to consumers, reducing competitive pressure and making consumers worse off. In this instance, however, authorising the INC’s Code of Practice is likely to have significant public health benefits,” said Commerce Commission Chairman Dr Mark Berry.

“In particular, it is widely agreed that there are a variety of health benefits from breastfeeding, which could be adversely affected by the unrestricted marketing and advertising of infant formula. Moreover, authorising the INC’s Code of Practice is unlikely to impact the price that consumers pay for infant formula,” said Dr Berry.

For these reasons, the Commission’s draft decision is that it should grant authorisation to the INC for its Code of Practice.

Interested parties are welcome to make submissions on the draft decision. Submissions are due by 24 March 2015 and can be sent to registrar@comcom.govt.nz, with the reference “Infant Formula” in the subject line.

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