Seven brands of so-called organic water can no longer be labelled as such, because water cannot be organic, says the ACCC.

Active Organic, Lithgow Valley Springs Organic, Nature’s Best Organic, Organic Australia, Organic Falls, Organic Nature’s Best and Organic Spring have all decided to change their name after negotiations with the Australian Competition and Consumer Commission to avoid enforcement action.

The consumer watchdog said that based on organic standards, water cannot be organic, and so it was misleading and deceptive to label any water as such.

“Credence claims such as ‘organic’ can be used to justify higher prices and create a competitive advantage for the user. As such it is essential that they are only used correctly,” the ACCC deputy chair, Delia Rickard, said.

David Isaac, director at DJ&A Australia, which sells Organic Australia water, said they were requested by ACCC to change the name of their water and they decided to comply.

“Whether we agree to their view or not – we put that to one side and decided to co-operate with the ACCC,” Isaac told Guardian Australia.

Isaac said there would be “a little bit of an effect” on their water distribution sales, but said the company has customer loyalty.

The ACCC said a number of manufacturers argued “organic” was part of a brand name rather than a representation of the product.

“Manufacturers cannot hide misleading claims in their brand names,” said Rickard.

The seven brands will remove the word “organic” from the names and marketing materials of their water. An eighth brand, Aqua Organic, has been withdrawn from sale.

The ACCC expects the “organic” branded bottles to clear from shelves soon as manufacturers have already begun supplying rebranded products.