AUSTRALIA: Study revealed true cost of proposed labelling laws

If the new labelling laws get the green light, Australian consumers could find themselves paying up to 2% more for their weekly shop.The Australian Food and Grocery Council (AFGC) has expressed outrage that the "seriously flawed" proposals are still being considered, and CEO Mitchel Hooke commented that ANZFA was wrong in promoting the labelling legislation publicly before a governmental decision was made and without considering the businesses involved. "We [do not] dispute… matter of public health and safety. We are opposed to the mandatory labelling provisions which are likely to confuse, mislead and cost consumers unnecessarily," Hooke said.To fully assess the impact of new nutrient and ingredient labelling requirements, the AFGC commissioned a KPMG study, which has revealed that food and drinks companies across Australia and New Zealand can expect to face costs of up to A$400m, causing a 2% rise in the price of food. Taxpayers can also expect a A$15m burden for enforcement of the laws.