Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Restrictions on infant formula marketing extended

Commission authorises extending restrictions on infant formula marketing


Issued 8 November 2018


Commission authorises extending restrictions on infant formula marketing
The Commerce Commission has authorised members of the Infant Nutrition Council Limited to extend the advertising and marketing restrictions in their Code of Practice to cover infant formula products for children aged up to 12 months of age.

Currently, the restrictions only apply to infant formula products for children aged up to six months of age. The INC asked the Commission to authorise the extended advertising and marketing restrictions, as the extended restrictions may lessen competition.

After consulting on its draft determination, the Commission found that the public benefits of the arrangement outweigh the likely detriments from the reduction in competition.

“After taking into account submissions received from a variety of parties, and considering the relevant benefits and detriments, the Commission’s view is that the arrangement would result in public benefits, including improved public health outcomes, which are likely to outweigh the detriments arising from the lessening of competition from the arrangement. Further, the Commission does not consider that the arrangement would necessarily result in significantly higher prices for consumers,” said Chairman Dr Mark Berry.

Therefore, the Commission has authorised the extended restrictions for a period of five years. This authorisation supersedes the Commission’s 2015 authorisation, which has accordingly been revoked.

The written reasons for the decision will be published on the Commission’s website at a later date.

Background
The INC is the association for the infant formula industry in Australia and New Zealand. Its membership is comprised of manufacturers, marketers and importers of infant formula.

The INC’s authorisation application for their proposed amended Code of Practice only relates to infant formula for children aged up to 12 months of age. Other milk formula products, such as toddler milk, did not form part of the application.

The Commission’s authorisation does not limit the public’s ability to purchase infant formula or to obtain information about suitable products that may meet their needs. The public will continue to be able to obtain information on infant formula from, for example, health professionals.

Authorisation requirements
The Commission may grant authorisation under section 58 of the Commerce Act for certain arrangements that may otherwise breach the Commerce Act, if it is satisfied that the public benefits of the arrangements outweigh the detriments arising from the loss of competition. The granting of an authorisation protects the applicant from court action under the Commerce Act by the Commission and private individuals.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: