To minimize legal risks in food ingredient labeling

In the practice of food businesses, stating the ingredients of ingredients always has many potential legal risks, although in terms of form, many brands are designed "in accordance with the law". The problem does not lie in whether the business records the composition or not, but in the way it is recorded, the level of detail and especially the ability to maintain the accuracy of the information when it is actually checked. The following are two cases of common legal risks arising in the way of recording ingredients and food labels of Vietnamese enterprises today and the direction of handling.

Many businesses choose to both name the mixed ingredients and list some of the ingredients inside, but it is incomplete

Mixed ingredient composition: inconsistent recording

According to Article 16 of Decree 43/2017/ND-CP (amended and supplemented by Decree 111/2021/ND-CP), for mixed raw materials, enterprises are not required to list all the components that make up those materials. This regulation aims to create room for flexibility for businesses in designing labels, avoiding labels that are too long and difficult to reach consumers.

In fact, many businesses choose to both name the mixed ingredients and list some of the ingredients inside, but it is incomplete. This way of recording easily leads to the understanding that the enterprise is choosing the detailed disclosure plan, but does not implement it to the end. In the context of increasingly stringent quality control, especially in large distribution systems, this inconsistency can be judged as confusing about the nature of the product.

The consequence is not only the risk of administrative sanctions, but also the risk of goods being suspended from circulation, requiring label correction, updating self-declaration documents, leading to significant costs and trade delays.

Announcement of the quantity of raw materials: "at the right time to record, wrong at the time of inspection"

Other specific legal risks arise from the disclosure of the quantity or content of unstable raw materials, such as live microorganisms, enzymes, bioactive substances, or components that are easily modified by time and storage conditions.

At the time of production and packaging, these indicators can be fully consistent with the announcement. However, during transportation, storage and distribution, the actual content may decline. When the authorities conduct sampling and inspection, the analysis results no longer coincide with the information on the label, the enterprise is at risk of being identified as false labeling, even though there are no subjective deceptive elements.

The core legal issue lies in the fact that the current law assesses violations based on the results of actual inspections, not on the will or goodwill of the enterprise at the time of labeling. Therefore, the correct internal process is not enough to protect businesses from legal risks if the disclosed information is no longer accurate when inspected.

Source: The Saigon Times

To minimize risks

From the perspective of legal risk management, businesses need to shift from the mindset of recording correctly at the time of production to the mindset of preserving accuracy throughout the product life cycle. Some approaches that may be considered include:

First, publish the minimum level of unstable ingredients at the time of expiration, instead of announcing the original content.

Second, add explanatory or warning information on the label about the natural variability of ingredients over time and storage conditions, in order to make information transparent to consumers.

Third, review the consistency between goods labels, self-declaration documents and internal technical documents, ensuring that all information given can meet the actual inspection.

Fourthly, for products that are imported or have a long distribution chain, special attention should be paid to environmental factors that can affect the stability of raw materials.

Writing the ingredients on the label is not only a formal requirement, but a legal commitment of the business to the nature and quality of the product during the entire circulation process. For unstable ingredients, each number put on the label carries risks if not calculated on a controllable basis. In the context of an increasingly stringent regulatory environment, a prudent, consistent and risk-based approach will help businesses not only comply with regulations, but also protect themselves from disputes and sanctions arising from their own trademarks.

Lawyer Nguyen Nhat Duong

HM&P Law Firm

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