GOLDEN Circle has admitted falsely labeling tins of fruit and vegetables as ``Proudly Australian owned''.
The company will donate about $1.8 million worth of fruit and vegetables to charity as part of an agreement brokered with the Australian Competition and Consumer Commission over the issue.
The product was unable to be legally sold in retail stores in its misleading packaging.
Golden Circle was taken over by US company Heinz in 2008 but continued to create new labels carrying the ``Proudly Australian Owned'' claim on some products until January 2010.
In November last year it was still claiming on its website that its "iconic status has been achieved through a commitment to remaining proudly Australian owned".
ACCC chairman Graeme Samuel said the outcome was a ``significant win for consumers and the disadvantaged''.
He said Heinz would "correct and remove the Australian-owned representations while ensuring affected stock does not go to waste".
Heinz will also publish corrective advertisements in major Australian newspapers.
