Issue:
Whether the defendant made unsubstantiated claims on beverages labels regarding the composition of its product Ceres Hanepoot White Grape Juice.
Summary:
The Competition Authority of Kenya (CAK) conducted a sector-wide market screening on fruit juices to counter the growing and unregulated use of nutrition and composition claims on beverages labels. The investigation found out that Ceres Hanepoot White Grape Juice, manufactured by the defendant, had incorrect claims asserting that the beverage was “real fruit juice”, contained “Vitamin C,” and had “no sugar or other additives.” Following regulatory review, these marketing claims were found to be unsubstantiated and misleading.
The CAK determined that the defendant had engaged in false and misleading representation regarding the true nature and composition of its product. By distributing a beverage bearing unverified nutritional claims, the manufacturer violated the Competition Act (Section 55(a)(i)), which prohibits suppliers from making false or misleading representations concerning the ingredients, standard, or composition of consumer goods. Additionally, the CAK ruled that the product’s packaging failed to comply with the mandatory labeling standards. Consequently, the marketing and supply of this non-compliant product constituted a violation. The CAK held that the industry-wide compliance gaps do not excuse individual regulatory violations.