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On June 6th, 2019, China SAMR issued a notification detailing the illegal practices of two enterprises marketing solid drink products using labeling claims reserved for infant food for special medical purposes. The notification also outlined SAMR’s work plan to rectify these issues and detailed plans to intensify post market supervision of food enterprises advertising using specific scientific terminology such as “biological”, “pharmaceutical”, “technology”, “health”[1] in their company name or brand name.
Recap of precipitating factors
In May this year, consumers found several products sold at stores in the vicinity of hospitals which used labeling terminology including the terms “solid drink” and “formula powder”. Claims also indicated the products were hypoallergenic and suitable for consumption by sensitive groups.
Starting on May 6th, journalists from The Beijing News have been conducting investigations into the retail environments around several hospitals in Beijing. The investigators found that stores inside three hospitals were selling “functional formula” produced by Zhejiang based Teyi Food Co., Ltd. and Shandong based Golddairy Co., Ltd[2]. The labeling claims used on these products are designed to mislead consumers and obviously in violation of China’s food safety law and multiple subordinate administrative rules, regulations, national standards etc. One particular product shown below uses a labeling claim indicating that the product is a “functional formula” and a food for special medical purposes, despite not being a registered FSMP product or the manufacturer holding a FSMP production license.
After the investigation SAMR stopped the sale of 11 product lines, seized all products and called a halt to production pending further investigation.
SAMR Outlines Upgraded Administration
On June 6th, SAMR urged local departments of market regulation to strengthen supervision over food enterprises which fit the following criteria：
Companies with product/brand names containing the following terminology: “biological”, “pharmaceutical”, “technology”, “health”, “hi-tech” (or synonyms)
Companies with production licenses for: beverage, confectionary, tea replacement and some other foods
Products which are designed to mislead consumers into thinking the product is an FSMP, infant formula or health food.
Work plan layout
The work plan focuses on four issues. First of all, it calls for true and compliant labeling. Labels and claims should comply with GB 7718 National Food Safety Standard General Rules for the Labeling of Prepackaged Food[3]. Product or manufacturers shall not use fraudulent, exaggerated, misleading texts or images to introduce products. Products or manufacturers should not directly state, imply or mislead consumers on medical therapeutic/prophylactic efficacy. Products without the requisite registration certificates should not be marketed as special foods and should not attempt to pass themselves off as special foods. All FSMPs must comply with strict labeling and advertising requirements. (read article: Compliance Strategy for Food Advertising in China[4])
SAMR also urges food manufacturers to use raw materials according to laws and regulations, and called on its subordinate local departments of market regulation to reinforce production supervision and step up random sampling. The clampdown on false advertising[5] in the health food sector, has also been expanded to cover all special foods and related sectors.
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