Issue:
Whether the defendant violated the Competition Act and food labeling standards by marketing its beverage with unsubstantiated claims.
Summary:
The Competition Authority of Kenya (CAK) initiated a market screening targeting fruit juices within the Kenyan market. This action was driven by the increasing use of unverified nutrition and composition claims by food manufacturers. The investigation focused on product manufacturing, labeling, ingredient disclosure, and disclaimer placement. The screening revealed that the defendant was distributing a beverage with prominent label claims stating it was “real fruit juice” with “no sugar or other additives.” These claims were found to be unsubstantiated and the product’s ingredient list was inaccurate.
The CAK concluded that the defendant had engaged in false and misleading representations regarding the true composition of its product. By supplying a juice product with unverified nutritional claims, the manufacturer violated Section 55(a)(i) of the Competition Act, which prohibits misleading representations concerning the composition, ingredients, or quality of goods.
Furthermore, the product failed to comply with the mandatory Kenya-East African Standard governing the labeling of prepackaged foods. Consequently, there was a penalization to the supply of consumer goods that do not conform to prescribed product information standards. Acknowledging the regulatory violations concerning misleading composition and non-compliant labeling standards, a settlement was proposed to rectify the product’s market presentation and ensure full compliance with East African food standards.