False Advertisement of Solid Beverage Sold as FSMP Linked to Bone Deformity in Children

Consumption of a solid beverage sold as an FSMP (advertised as a substitute for children allergic to cow's milk) has been linked to adverse reactions in five children. The adverse reactions appear to be similar to the bony manifestations (craniotabes) of vitamin d deficiency in children.

Seventeen years after the “Inferior Milk Powder Scandal in Fuyang City," and twelve years after the “Melamine Incident," China is facing its latest infant related food safety scandal, aptly dubbed the “Big-Headed Baby Scandal." This scandal is associated with the consumption of a solid beverage marketed and sold as an FSMP (Food for Special Medical Purpose) product.

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As reported by a TV program ^[1] in Hunan Province on May 11, 2020, a local maternity & baby store called “Love Baby (爱婴坊)” sold a protein solid beverage named “Bei An Min (倍氨敏)." The product is an amino acid-based solid beverage falsely advertised as an alternative to infant formula for those allergic to normal milk powder. Currently, five babies have been identified as having an adverse reaction to the consumption of the product. On May 13, 2020, SAMR issued a notice ^[2] beginning a major investigation into the case. As the product complies with solid beverage requirements, the main issue is false advertising and sales fraud.

Industry Chaos behind this Case

Unfortunately, the illegal practices that lead to this issue is not an isolated incident. On June 6, 2019, China SAMR issued a notification ^[3] detailing the illegal practices of two enterprises marketing solid drink products using labeling claims reserved for infant food for special medical purposes.

In December 2019, two doctors were suspended pending further investigation due to their recommendation to use a solid beverage “舒儿呔” as an FSMP product. In January 2020, a mother reported the false advertising of “Bei An Min” to the local SAMR authority. She received compensation, which amounted to ten times the value of the product.

According to Beijing News, solid beverage products are mainly distributed in mother & baby stores and stores in hospitals.

Specialized Campaign to Crack Down on False Advertising and Illegal Sales

To further clean up the chaos, on May 15, 2020, SAMR issued another notice ^[4], detailing a specialized program to crack down on advertisements of solid drinks, pressed candy, tea substitute, etc., which will last until November 2020. False advertising, illegal selling, and labeling that indicates the product can satisfy patients' special demands for nutrients or diet will all be a major target of the rectification campaign.

Key Points of this notice

Mother & baby stores, hospitals, and stores near hospitals, online channels will be the main target.
There will also be a crackdown on ordinary food sold as special foods (i.e., health food, infant formula, FSMP products) and sold via networks, meetings, phone calls, direct selling.
Designated special food sales areas are mandatory and special foods must be separated from ordinary foods, which is actually highlighted in the 2019 Implementation Rules of Food Safety Law ^[5].
Labeling rules for any indications that a product can satisfy patients’ special demands for nutrients or diet shall be overhauled.
Local authorities shall intensify the supervision and inspection of false advertising and illegal sales to prevent and control food safety risks.
Implement the strictest punitive measures as articulated within the Food Safety Law. Punitive measures will target legal representatives, principal persons in charge, directors, and other responsible persons. For those violate the Anti-unfair Competition Law, Advertising Law, etc. an integrated punishment mechanism will be adopted.

Will these actions be enough to rectify the problems? Industry insiders also gave their own opinions. It has been suggested that solid beverage labels bear the following disclaimer “this powdered beverage is not infant formula and cannot be taken as the main food for infants." In addition to strict supervision on products and advertising, we believe a faster FSMP registration process would benefit the sector. China has only approved 48 FSMP products. Regulations are a prohibitive barrier for SMEs.

A Note to Foreign FSMP Products Sold via E-commerce Platforms

During our analysis of imported solid beverages sold on E-commerce platforms, we were surprised to find a well-known foreign brand using a similar misleading advertisement practice. It advertised its nutrient supplement powder as milk powder for infants. Under Chinese law, all sellers using E-commerce platforms and CBEC shall also comply with China's advertising law. According to the SAMR notice, false advertising on online channels is a major target of the rectification campaign.