The Australian Advertising Standards Board (ASB) this week upheld a complaint against the Tamar Valley yoghurt advert, ruling that it breached Section 2.1 of the Food Code
During the ad, a pot of Tamar Valley yoghurt, photos of the Tamar Valley, fresh berries and honey are placed in a straw-filled box.
An accompanying voiceover says: "Tamar Valley yoghurt is created in the pristine Tamar Valley from premium ingredients and fresh local milk."
"Made in Tasmania, exported to Australia," it adds.
ASB was approached by a single complainant, who claimed the advert was "misleading" in its suggestion that Tamar Valley yoghurt is made from Tasmanian ingredients when "the berries are imported."
Responding the to complaint, Fonterra acknowledged that country of origin "is currently a topical issue with extensive media coverage regarding the safety concerns of imported berries in China" - a reference to a recent outbreak of Hepatitis A linked to frozen berries.
In its ruling, ASB said the voiceover was "technically correct."
However, given the visual images, the message most likely to be taken from the advert is that "all the ingredients are from Tasmania," it said.
"The Board considered that in light of the current community concerns regarding the Hepatitis A link with sourced berries the strong suggestion in this advertisement that the ingredients are from Tasmania is a suggestion which is misleading and deceptive."
Fonterra, which rescued Tamar Valley from administration in November 2013, had argued that the concerns outlined by the complainant were "misplaced" and the wording that featured in the advert was "substantiated" because Tamar Valley yoghurt is manufactured at a plant beside the Tamar Valley River in Tasmania using milk sourced from Tasmania.
"The fresh milk is a major ingredient in Tamar Valley yoghurt," Fonterra wrote in response to the complaint.
"The Advertisement makes no further statements as to the origin of any other essential ingredients used to produce Tamar Valley yoghurt," it argued.
Responding to the ASB ruling, Fonterra said the advert in question has not been broadcast since March 29 "as per the media schedule."
“Fonterra will not broadcast the current form of the advertisement again,” it added.
Click HERE to read the full ruling.