Issue:
Whether the defendant misled consumers regarding the composition of their cookies and what was reflected in their labels.
Summary:
The Competition Authority of Kenya (CAK) initiated an investigation following a formal consumer complaint alleging health issues and harm caused by cookies purchased from the defendant. Even though the cookies’ labels stated “gluten-free”, a review of the product’s packaging revealed a discrepancy between the main claim and the side one. The last contained fine print stating the product “may contain traces of gluten.”
The CAK concluded that the defendant had engaged in product misrepresentation. It found the manufacturer in violation of the Competition Act for misleading consumers (Section 55(a)(i)).
Their products’ labels were incorrect. The investigation established that the fine-print disclaimer (“may contain traces of gluten”) was strategically less likely to be noticed. Moreover, it directly contradicted the primary marketing message (“Gluten Free”), and failed to alter the material impression created for allergen-sensitive consumers that the product was entirely safe for a gluten-free diet.