Paddle Pop and Sakata snack makers fined for 'misleading' school canteen health claims

The makers of two childrens' snacks have been fined and agreed to stop using claims that their products are suitable for school canteens, after an investigation by the consumer watchdog.

The makers of Rainbow Paddle Pops and Sakata rice snacks have been hit with almost $22,000 in fines after making misleading health claims about their products on packaging.

The Smith's Snackfood Company's Sakata Paws Pizza Supreme Rice Snacks and Unilever Australia's Paddle Pop Rainbow carried misleading claims about their suitability for school canteens, according to the Australian Competition and Consumer Commission (ACCC).

The packaging bore logos which advised the snacks had met national health guidelines for school canteens.

However, clarification that the products were rated "Amber" were written in small print separate from the logos.

An amber rating defines products that can be included on canteen menus but are recommended to be served in small amounts and be kept to a minimum intake.

"The ACCC believes both companies were using logos to claim that these products were a healthy option for school canteens to supply to children, when they were not," ACCC Commissioner Sarah Court said.