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Heinz coughs up the Beanz!

The Federal Court has imposed a $2.25 million penalty on Heinz Australia for a claim that its ‘Little Kids Shredz’ products -containing almost 66 per cent sugar-were ‘beneficial’ for the health of young children.

The Court decided that Heinz’ nutritionists should have realised that such an assertion in these circumstances was misleading.

Although this penalty fell short of the $10 million sought by the ACCC, Heinz suffered the pain and ignominy of being ordered to pay costs and to implement a compliance programme.