Insight
Legal Risks for Food and CPG Brands in Australia
22 Sept 2026
In short
Food and CPG brands navigate a complex regulatory landscape in Australia. Compliance requires careful attention to consumer law, intellectual property, and supply chain management.
Operating a food or consumer packaged goods (CPG) brand in Australia involves navigating a detailed and evolving legal and regulatory environment. Non-compliance can lead to significant financial penalties, reputational damage, and operational disruptions. Proactive legal due diligence across product development, marketing, manufacturing, and distribution is essential.
What are the key consumer law considerations for food and CPG brands?
Food and CPG brands must comply with Australian Consumer Law (ACL), which prohibits misleading or deceptive conduct and ensures products are fit for purpose and of acceptable quality. This extends to all aspects of a product's lifecycle, from labelling and advertising to warranties and consumer guarantees. Misrepresentations about ingredients, health benefits, country of origin, or environmental claims can attract regulatory scrutiny from the Australian Competition and Consumer Commission (ACCC).
- Labelling and Packaging: Brands must ensure all product information, including nutritional panels, ingredient lists, allergens, and country of origin statements, is accurate and compliant with the Australia New Zealand Food Standards Code (FSANZ Code). False or misleading labelling is a breach of the ACL and the FSANZ Code.
- Advertising and Marketing: All promotional materials, including social media content, influencer marketing, and traditional advertising, must be truthful and substantiated. Claims about product efficacy, health benefits, or sustainable practices must be verifiable.
- Consumer Guarantees: Products sold must meet statutory consumer guarantees, meaning they must be of acceptable quality, fit for purpose, and match any description or sample. Manufacturers and suppliers cannot contract out of these guarantees.
- Unfair Contract Terms: Supply agreements with retailers or distributors, particularly for smaller brands, may be subject to the unfair contract terms regime under the ACL, which protects against terms that cause a significant imbalance in rights and obligations. More information on this can be found in our article on unfair contract terms.
How can brands protect their intellectual property?
Intellectual property (IP) is a critical asset for food and CPG brands, encompassing everything from brand names and logos to product formulations and packaging designs. Protecting these assets is vital for maintaining market distinctiveness and competitive advantage.
- Trade Marks: Registering trade marks for brand names, logos, slogans, and even distinctive colours or shapes provides exclusive rights to use them in Australia. This allows brands to prevent competitors from using similar marks that could confuse consumers.
- Patents: While less common for CPG than for pharmaceuticals, patents can protect novel product formulations, manufacturing processes, or functional packaging designs.
- Copyright: Copyright automatically protects original literary and artistic works, including packaging designs, marketing copy, and website content. Registration is not required in Australia, but proper record-keeping is advisable.
- Trade Secrets and Confidential Information: Confidential recipes, manufacturing processes, customer lists, and business strategies should be protected by robust non-disclosure agreements (NDAs) with employees, contractors, and partners. Our article on intellectual property provides further guidance.
Proactive IP strategy involves conducting searches before launch to avoid infringing existing rights, registering key assets, and diligently monitoring the market for potential infringements. Enforcement actions may be necessary to protect against counterfeiting or unauthorised use.
What are the regulatory requirements for food safety and product standards?
Food safety is paramount, and Australian food and CPG brands operate under a strict regulatory framework designed to ensure product safety and quality. Compliance is overseen by various bodies at federal, state, and local levels.
- Food Standards Australia New Zealand (FSANZ) Code: This comprehensive code dictates requirements for food composition, labelling, contaminants, additives, and hygiene. Compliance is mandatory for all food businesses.
- State and Territory Food Acts: Each state and territory has its own food legislation, which often adopts the FSANZ Code but may include additional specific requirements for food businesses operating within their jurisdiction.
- Product Recalls: Brands must have robust systems for identifying and managing product safety issues, including the ability to conduct efficient and effective product recalls in compliance with the ACCC's recall guidance.
- Import/Export Regulations: Brands involved in international trade must comply with biosecurity laws, import permits, and customs regulations, in addition to the food standards of the destination country.
How should brands manage their supply chain risks?
A resilient and legally compliant supply chain is fundamental for food and CPG brands. Risks range from ethical sourcing and modern slavery to contractual disputes and quality control.
Effective supply chain management requires:
- Robust Supplier Contracts: Agreements with manufacturers, ingredient suppliers, distributors, and logistics providers must clearly define responsibilities, quality standards, delivery schedules, liability, and dispute resolution mechanisms. Our insights on business contracts are relevant here.
- Due Diligence: Brands should conduct thorough due diligence on all supply chain partners, particularly regarding their compliance with food safety standards, ethical labour practices, and environmental regulations.
- Modern Slavery Act Compliance: Larger Australian entities (annual consolidated revenue of $100 million or more) must report on modern slavery risks in their operations and supply chains. Even smaller brands should consider ethical sourcing to mitigate reputational risk.
- Traceability: Implementing systems for end-to-end product traceability is crucial for managing recalls, verifying claims (e.g., organic, free-range), and demonstrating compliance.
These measures protect a brand's reputation and ensure legal compliance throughout its production and distribution network.
What considerations apply to competition law and market conduct?
Australian competition law, governed by the Competition and Consumer Act 2010 (Cth), aims to prevent anti-competitive practices and promote fair trading. Food and CPG brands must be mindful of their conduct in the market, especially when dealing with competitors, suppliers, and retailers.
| Area of Concern | Legal Implication |
|---|---|
| Cartel Conduct | Illegal agreements between competitors (e.g., price fixing, market sharing, bid rigging). Severe penalties apply. |
| Misuse of Market Power | Prohibited if a business with substantial market power engages in conduct that has the purpose, effect, or likely effect of substantially lessening competition. |
| Exclusive Dealing | Requiring customers or suppliers to only deal with the brand or its affiliates. Generally only illegal if it substantially lessens competition. |
| Resale Price Maintenance | Forcing or inducing resellers not to sell products below a specified price. Strictly prohibited. |
Brands must also be cautious about information sharing with competitors, even informally, as this can inadvertently lead to cartel conduct allegations. Internal compliance programs and training are advisable to minimise risk.
What employment law obligations do food and CPG brands face?
Like all Australian businesses, food and CPG brands must adhere to comprehensive employment law obligations. This includes fair work practices, workplace health and safety, and managing an often diverse workforce across manufacturing, distribution, and retail.
- Awards and Agreements: Employees must be paid according to the applicable modern award (e.g., Food, Beverage and Tobacco Manufacturing Award 2010, Fast Food Industry Award 2010) or enterprise agreement, including correct minimum wages, penalty rates, and leave entitlements.
- Workplace Health and Safety (WHS): Brands must provide a safe working environment, particularly in manufacturing or warehousing settings where machinery, chemicals, or manual handling risks are present. This includes risk assessments, safe operating procedures, and appropriate training.
- Casual and Fixed-Term Employment: Businesses engaging casual or fixed-term employees must ensure compliance with specific statutory requirements regarding offers of ongoing employment or contract duration limits.
- Discrimination and Harassment: Employers must foster inclusive workplaces and have policies and procedures in place to prevent and address discrimination, harassment, and bullying.
Navigating these obligations requires careful attention to industrial instruments, robust WHS systems, and fair and transparent HR practices.
Practical steps for risk mitigation
Brands should implement a proactive legal compliance framework to identify and mitigate risks effectively. This involves embedding legal considerations into business operations from product conception to market.
- Conduct Regular Legal Audits: Periodically review all business practices, including labelling, advertising, contracts, and IP assets, against current legislation and industry codes.
- Develop Internal Policies and Procedures: Create clear guidelines for staff on food safety, WHS, ethical sourcing, marketing claims, and IP protection.
- Invest in Staff Training: Ensure all relevant employees understand their legal obligations, especially those involved in product development, marketing, and sales.
- Seek Expert Legal Advice: Engage legal professionals for advice on product launches, complex contracts, IP registration, and dispute resolution to ensure compliance and protect commercial interests.
- Monitor Regulatory Changes: Stay informed about changes in food standards, consumer law, IP law, and environmental regulations that may impact your operations.
Frequently asked questions
What is the Australian Consumer Law's impact on food claims?
The Australian Consumer Law prohibits misleading or deceptive conduct. Food brands must ensure all claims on packaging, in advertising, or through marketing, especially regarding health benefits, ingredients, or country of origin, are accurate, truthful, and substantiated to avoid ACCC penalties.
Do I need to register my food product's name as a trade mark?
Registering your food product's name, logo, or distinct packaging elements as a trade mark with IP Australia provides exclusive rights and protects your brand. This prevents competitors from using similar identifiers that could confuse consumers and dilutes your brand's distinctiveness.
What are the key food safety regulations in Australia?
Australian food businesses must comply primarily with the Australia New Zealand Food Standards Code (FSANZ Code), which covers composition, labelling, and contaminants. Additionally, state and territory Food Acts impose specific requirements, enforced by local health authorities to ensure public safety.
How does the Modern Slavery Act affect food and CPG brands?
Australian entities with consolidated revenue over $100 million must report annually on modern slavery risks in their supply chains. Smaller food and CPG brands, while not mandated to report, increasingly face pressure from consumers and larger partners to demonstrate ethical sourcing and transparent supply chains.
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