Food brand Heinz has been found guilty of false and misleading behaviour after the Federal Court found that a popular kids snack which was implied to be 'healthy' was in fact over 60 per cent sugar.
It was found that the Little Kidz Shredz product were not nutritionally beneficial to the standard implied by the labelling stating it contains "99 per cent fruit and veg".
Conjecture largely surrounded the representations made on the boxes suggesting that the product was beneficial to toddlers.
"We were particularly concerned by Heinz's conduct because the Shredz products were marketed as being beneficial for young children," ACCC acting chair Delia Rickard said in a statement.
"Heinz's Shredz products consisted of over 60 per cent sugar, significantly higher than that of natural fruit and vegetables. An apple in comparison contains around 10 per cent sugar."
Heinz will be fined for breaching Australian Consumer Law.
"There was never any intention to mislead consumers," Heinz managing director Bruno Lino said.
"The Shredz products have not been sold here since May 2016. We are looking at the matter carefully to see if there is anything further we can learn."