Labeling and advertising are two of the main ways of communicating important information relating food and beverage products (henceforth collectively referred to as “
Foods”). Labels and advertisements are expected to offer true and correct information and to make claims that the general public can trust and rely upon. Due to their important nature, any false and misleading labeling (“
Labels”) or advertisements (“
Advertisements”) may ultimately lead to substantial losses being sustained by producers, manufacturers, importers or other responsible parties operating within the food industry. To offer but a few basic examples of this, in 2010 a producer of yogurt products operating in the United States was required to pay compensation to the tune of USD 45 million for falsely claiming that their product had been, “clinically and scientifically proven to regulate digestion and boost the immune system”. Moreover, in 2008, a producer of multivitamins and herbal supplements agreed to a settlement amounting to some USD 23.3 million after falsely claiming that their product could both cure and prevent colds.
Although there has never been a case here involving anything close to these amounts of compensation, there have nevertheless been a number of national cases which have pointed to the importance of proper labeling and advertising. For example, one producer of isotonic drinks was forced to recall its entire product line from the marketplace, as they had only disclosed one of the two preservatives used in their product. Furthermore, in 2016, the Indonesian food market was penetrated by several imported snacks bearing false Halal labeling.
In order to safeguard food advertising and labeling, and to disseminate Indonesia’s most recent Law on these matters, namely Law
No. 18 of 2012 on Food (“
Food Law”), the outdated Government Regulation
No. 69 of 1999 on Food Labeling and Advertising (“
Regulation 69/1999”) is currently being amended by the government. Through this process of amendment, the government is formulating a new
Draft Government Regulation on Food Labeling and Advertising (“
Draft Regulation”). In essence, the Draft Regulation will encompass the following issues:
......