The Commerce Commission has granted authorisation to the current and future members of the Infant Nutrition Council Limited (INC) to restrict their advertising and marketing of formula products for infants aged up to 12 months old.
In assessing the INC’s most recent application (the third since 2015), the Commission has not identified any significant changes in the infant formula industry or in the actions of the members of the INC that will substantially impact its previous assessments of these restrictions.
After consulting on its draft determination, the Commission found that the public benefits of the proposed arrangements are likely to outweigh the detriments from the reduction in competition.
“After considering submissions received from a range of stakeholders, and considering the relevant benefits and detriments, the Commission’s view is that the proposed arrangements would result in public benefits, including important public health outcomes for parents and infants resulting from the protection of breastfeeding rates. In the Commission’s opinion, these benefits are likely to outweigh the detriments arising from the lessening of competition caused by the restrictions on advertising and marketing of infant formula products” said Division Chair Sue Begg.
The written reasons for this decision are available here. https://comcom.govt.nz/case-register/case-register-entries/infant-nutrition-council-limited2/_nocache