Labelling and ad laws stir controversy among F&B industry stakeholders

• Multi-billion rupee food and beverage industry urges exemptions and revisions to ease compliance burdens 
• Requests nutrition table exemptions for ingredient-only products and uniform advertising rules
• Small-label products face difficulties meeting extensive labelling requirements 
• Claims advertising restrictions on food products stricter than other consumer goods, raining fairness concerns
• Says innovation in functional food hindered by regulatory hurdles requiring SLS amendments 
• Highlights inconsistencies in product availability, shifts in soap and margarine markets
• Asserts rigid enforcement may increase compliance costs, restrict product availability and slow innovation 

By Charumini de Silva

The latest labelling and advertising regulations introduced by the Health Ministry along with the Consumer Affairs Authority (CAA) regulations, which are in place have sparked widespread debate with industry stakeholders raising concerns practical implementation challenges and inconsistencies in regulatory enforcement.

The multi-billion rupee local food and beverage industry has been at the forefront of these discussions, calling for exemptions and revisions to ease compliance burdens on businesses, particularly those dealing with small-label products and innovative consumer goods. The new Labelling regulations apply only for packaged food and not for fast food (take away packs) which is a main cause for the rising of Non-Communicable Diseases (NCDs).

 “We want the Government to reconsider specific provisions of the regulations to strike a fair balance between consumer protection and industry feasibility,” they told the Daily FT. 

They added that nutrition table exemptions should be granted for products used only as ingredients, advertising regulations should be uniformly applied across all consumer product categories, along with greater labelling flexibility should be provided for small-package products and clear regulatory guidelines should be established for product categorisation. 

Elaborating on their specific issues, they said one of the primary challenges highlighted by the industry stakeholders was the difficulty in incorporating all mandatory labelling requirements on products with labels smaller than 200 square centimetres. 

“The current regulations require manufacturers to display critical information, including the brand name, common name, net contents, complete ingredient list, manufacturing and expiry dates, date packed if repacked, batch number, retail price, manufacturer and distributor details, country of origin, storage and usage instructions — along with minimum font size compliance, language requirements and allergen warnings,” they listed out. 

Manufacturers argue that the sheer volume of information required makes it particularly impossible to fit everything onto smaller packaging. 

To address this, the industry has proposed an exemption for the inclusion of a nutrition table on products that are used solely as ingredients rather than being directly consumed. 

Another key issue raised by the industry was the perceived inconsistency in advertising regulations across different product categories.

“There are double standards for different product categories,” they claimed.

The industry pointed out that under the current framework, the use of mascots, lactating mothers and children are strictly prohibited on food product labels. However, these restrictions do not extend to personal care products such as talcum powder and soap. 

“We often wonder why food-related advertising faces stricter regulation and scrutiny compared to other consumer goods,” they said, arguing such selective enforcement creates an uneven playing field for businesses.

In addition, they voiced concerns about how the new regulations could stifle innovation, particularly in the development of functional food products that incorporate locally sourced, health-enhancing ingredients. 

“Several local companies have invested heavily in research to introduce products containing ingredients such as kothala himbutu, karapincha, kurakkan, tamarind — all of which have recognised benefits in Ayurveda and traditional medicine,” they pointed out. 

However, under the new labelling framework, the inclusion of such ingredients in standardised products would require formal amendments to the Sri Lanka Standards (SLS) before they can be legally used. 

“This bureaucratic hurdle places unnecessary restrictions on innovation, while similar practices in the personal care industry, such as the introduction of toothpaste with charcoal or salt — face no such barriers due to regulatory loopholes,” they said. 

Furthermore, the industry pointed to the shifts in product availability in the market, especially on the soap and margarine segments. 

The stakeholders noted that traditional soap options have diminished with a growing shift towards bathing bars, raising questions about regulatory influences on product availability due to cost issues.

Similarly, margarine has become scarce, while fat spreads dominate the market, thus leaving lesser choice for the quality conscious consumers. This has created confusion among consumers. 

“We require clear definitions and categorisations to ensure that labelling regulations accurately reflect product differences and do not mislead customers,” they insisted.

They opined that while the Health Ministry and CAA maintain that regulations are designed to enhance consumer awareness and protection, a rigid approach could have unintended consequences including increased compliance costs, restricted product availability and slowed innovation in the local market.