Fines for imported jelly with NZ label

A company that misled consumers about a product being sourced from local bees and made in New Zealand has been fined $16,000 in the Auckland District Court.

NZ Korea Health was fined after pleading guilty to nine breaches of the Fair Trading Act.

Sang Rae Kim, also known as Jonathan Ken, was also fined $12,000 after pleading guilty to two breaches of the act.

Kim was responsible for labelling the royal jelly as New Zealand sourced and made, and as being of superior quality when it was made from imported, powdered ingredients.

This is the third time the Commerce Commission has prosecuted Kim and his associated companies for such breaches.

NZ Korea Health labelled the imported royal jelly - a bee secretion used to feed larvae and used in dietary supplements - as a product of New Zealand, as made in New Zealand and used the Buy New Zealand Made logo.

It also had an image of a kiwi carrying the New Zealand flag with the wording "Kiwi and quality from New Zealand" on the product.

The only local ingredients were a small amount of white beeswax, used to preserve the royal jelly, and water used to make the capsule shell.

The company also said the product was of a high potency, when it wasnot.

Buy New Zealand Made spokeswoman Trina Snow said most businesses that said their products were made and sourced here were legitimate but some, especially in the health and tourism sectors, abused the brand.

"When companies are caught incorrectly labelling their products with country of origin, consumers are going to be weary of products claiming to be New Zealand made."

Snow said if businesses were caught using the label without being certified by the company, it "put a stop to it pretty quickly".

The commission said the misrepresentations on the label of the NZ Korea Health product were deliberate, and would have led consumers to pay more than the product was worth.

This is the third royal jelly case the commission has investigated where the product claimed false country of origin and potency.