All food manufacturers should beware of making misleading health claims on their products after a judge ruled against Heinz, a health group says.
The Federal Court found food giant Heinz misled consumers by claiming one of its snack ranges, marketed at toddlers, was a healthy choice for children.
The Obesity Policy Coalition, which alerted the ACCC to the claims on Little Kids Shredz, said it hoped it sent a message to food manufacturers.
"Industry needs to be accountable to their customers and not imply that their high sugar products, particularly those developed for children, are healthier than they really are," OPC executive manager Jane Martin said in a statement.
"Promoting processed, high-sugar products as healthy for children - regardless of whether it contains sugar derived from fruit, vegetables or elsewhere - is irresponsible and misleading."
Heinz, while disappointed with the ruling, said it would review it to see what they could learn from it.
"Heinz is committed to providing high quality food products and to communicating clearly and transparently with consumers on its packaging," the company said in a statement.
The Shredz products were a dehydrated snack made from 99 cent fruit, vegetable and chia seed ingredients and did not contain any preservatives, artificial colours or flavours.
Federal Court Justice Richard White ruled on Monday that in using terminology "no nasties" and "naturally sweet" the company was implying the products were nutritious.
"The prominent statements that the product comprises 99 per cent fruit and vegetables together with the pictures of the fruit and vegetables conjure up impressions of nutritiousness and health," Justice White said.
An analysis carried out by the consumer watchdog indicated the three products contained, 62-63 per cent, 66 per cent and 62 per cent sugar.
"I am satisfied that each of the Heinz nutritionists ought to have known that a representation that a product containing approximately two-thirds sugar was beneficial to the health of children aged 1-3 years was misleading," he said.
But he said those responsible for the packaging had "adopted a generally conservative approach to the claims which should be made".
Shredz Kidz has not been sold in Australia since May 2016.
