The Appeals Board of the Advertising Code Foundation has ruled that The Flower Farm is misleading advertising with certain statements about palm oil. What does this mean?
In December 2019, the Appeals Board of the Advertising Code Foundation ruled on communications by The Flower Farm about palm oil. In its statements, the margarine producer stressed that its products do not contain palm oil and pointed out the harmful effects of palm oil use on the rainforest.
But according to the Board, some of these expressions contain false suggestions and constitute misleading advertising.
Advertising Code Committee ruling
The case began with a complaint that The Flower Farm’s expressions give a one-sided and unsubtle picture of palm oil-containing products. The Advertising Code Committee initially claimed that the producer unfairly omitted information about ‘clean’ palm oil and other causes of deforestation.
This may cause the average consumer to make a purchase decision he would not otherwise have made. Based on article 8.3 opening words and under c of the Dutch Advertising Code (NRC), the Commission ruled that there was misleading advertising by omitting essential information.
Appeals Board ruling
The Board of Appeal largely upheld the Commission’s ruling, but amended the grounds. The expression on the packaging, which states that “entire virgin forests are destroyed for palm oil”, wrongly suggests that other margarines containing palm oil are harmful to nature.
According to the Board, this in itself is misleading within the meaning of Article 8.2 opening words and under b NRC, irrespective of whether there was an omission.
In addition, the Board ruled that other expressions, such as ‘Buying our palm-free margarine helps against a major problem: deforestation of the rainforest’, were also misleading. These expressions create an image of a relative benefit of The Flower Farm margarine that does not actually exist.
Impact on The Flower Farm
The Board confirmed that The Flower Farm’s packaging and expressions should be changed to prevent further deception. However, the producer may continue to emphasise that its products are palm oil-free, provided this is done in a correct and non-misleading manner.
