Market

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Showing posts with label deception. Show all posts
Showing posts with label deception. Show all posts

Tuesday, November 6, 2012

INDUSTRY'S "GOLDEN GOOSE" BEING MAULED-NEW PACKAGE POLICY

Exploitation of the consumer by some of the manufacturing industry players through out the world through deceptive practices is well known. While some countries have liberal rules that consistently favor the industry there are others who impose rigid rules for preventing the exploitation of the consumer. Most commonly observed strategy for the manufacturers has been to psychologically defraud the consumer through manipulation of size, shape and quantity of contents in a pack. With the help of computer wizards pack size and shape can be manipulated to appear bigger than what they are in reality with contents being same or less than what one would expect. In India biscuit marketing is an example where packs are designed for rounded prices like Rs2, 3, 4, 5 etc and as and when the industry wants to raise the per unit price the quantity in individual pack is reduced mercilessly without raisin the price of the pack while over all appearance looks almost same from the perception of the consumer. During the last 3 years the Rs 2 pack of Glucose biscuit has seen a reduction of contents to the extent of almost 15-20% without the consumer being aware of it in absence of a provision that mandates declaration of the price per a standard unit like kg or liter. This lacuna is sought to be addressed by the recent implementation of the Metrological Rule of 2011 with effect from November 1, 2012. Here are further details on this action by GOI.

'The Government on Thursday in the interest of common consumer said from today onwards 19 commodities of day- to-day use like bread, biscuits, tea etc. can be sold in specified standard packs only. Ministry of Consumer Affairs, Food and Public Distribution had issued a notice on June 05, 2012 in this regard by amending Legal Metrological (Packaged Commodities) Rules, 2011.Manufacture, packing or import of these 19 commodities in non-standard packs will invite penal action.The commodities include baby food, weaning food, cereals and pulses, coffee, tea, milk powder, rice, salt, soaps, paint varnish, cement in bags,  mineral water and drinking water,  aerated soft drinks, non-alcoholic beverages,  non-soapy detergents, edible oils vanaspati, ghee and butter oil.  However non-standard packs which have already been manufactured and packed on or before Oct. 31, 2012 and are ready for sale in different retail outlets, have been exempted from penal action. Controllers of Legal Metrology in all the states and UTs have been asked to ensure strict compliance of the order".

The action by GOI is indeed a welcome development for the harried consumers of the country. Though one would have liked to see this rule applied to all consumer products, limiting it to 19 selected commodities can be seen as a beginning. It is surprising that products like sweetmeats and savories are not covered which generate a business of over 10, 000 crore every year. It is here that the manufacturers do maximum manipulation with regard to pack size, shape and content. With nitrogen flushing commonly practiced in pillow pouch packing, large sized packs inflated with nitrogen can confuse the consumer if the quantity within the packet varies for different brands. For example a Rs 5 pack potato chips pack may look big in appearance while it may contain hardly a few pieces of chips. One can only hope that these rules will be made applicable to all processed foods progressively in the coming months.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
  

Thursday, November 10, 2011

DECEPTION, THY NAME IS BEVERAGE INDUSTRY!

The beverage industry which has been thriving on caffeinated cola drinks and synthetically flavored sugar syrups appears to have adopted a new strategy to boost their business in the light of universal criticism against their product basket for contributing to over weight, obesity and other life style disorders so rampant to day. Who does not know that their product portfolio is devoid of any nutrients and are based on snow white sugar or the much maligned High Fructose Corn Syrup. As sugar is a habit forming food ingredient, once hooked on to these sugar rich products it is very difficult, especially for youngsters to chuck the habit. Sustained campaign by consumer activists is forcing the manufacturers to indulge in some deception by introducing fruit based drinks giving the consumer the impression that they are healthy! Ironically these so called fruit drinks have only about 10% natural juice, the rest being water, synthetic flavor and sugar! Here is a take on this disturbing trend in promotion of unhealthy foods in many parts of the world.

"A new report from the Rudd Center for Food Policy and Obesity,  a non-profit research and public policy organization, found that many popular fruit drinks marketed to children can have the same, if not more sugar as a candy bar, and many use artificial sweeteners. Dr. Marlene Schwartz, deputy director of the Rudd Center for Food Policy and Obesity, said, "The companies really are misleading both the parents and their children. (These drinks are) essentially water and sugar and artificial sweeteners ... and they're trying to package them to look like they are juice." The report also found companies specifically target young kids in advertisements to sell their products. In a statement, the American Beverage Association called the report "another attack by known critics in an ongoing attempt to single out one product as the cause of obesity," adding that soft drink advertising has dropped by 96 percent since 2004 during children's programming. But the industry is still self regulated -- something Schwartz says she believes must change. Schwartz said, "I don't believe self-regulation is the answer, I think in some ways government regulation would be easier because it would guarantee a level playing field." Nutritionist Keri Glassman, author of "The O2 Diet," said on average fruit drinks, soda and caffeinated energy drinks have seven teaspoons of sugar in an eight-ounce serving -- the equivalent of about 10 Hershey Kisses".

In India also to access to any 100% natural juice is a logistical nightmare because of deceptive labeling practices indulged in by the industry making it difficult to distinguish between drinks and juices. It is true that 100% juice based drinks are costlier with profit margins very thin, while fruit flavored drinks are low cost products that can be sold easily with killing margins. There was a time in India almost 4 decades ago when GOI was promoting fruit pulp "containing" soft drinks in order to promote juice making industry in a big way but at that time the health angle was not in focus and the purpose was to find outlet for fruit pulp which could have strengthened fruit processing industry. Now is the time to promote policies and introduce initiatives that can support 100% juice beverages which will better serve the purpose of protecting health. If experts are to be believed industry must promote 100% juice or pulp of different fruits and advise the consumers to dilute the same with adequate water to make their own drink. Canned pulps of some fruits are available in the market but are very expensive to most of the consumers. Probably 50% pulp containing products without addition of sugar also must be allowed, in order to bring down the prices significantly to enable a large section of the consumer community to have access to nutritious fruit drinks..

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Tuesday, June 15, 2010

HIGH TECH "DECEPTION"-NEED FOR INCREASED VIGILANCE


The statement that"deception, thy name is food industry" is becoming increasingly apt to describe some of the actions of a few major players in this sector continuously striving to mislead consumers regarding the true strength of their products. It is true that labeling provisions are becoming more and more stringent in many countries to preempt such attempts and give the consumer a modicum of confidence regarding the quality and safety of marketed foods offered to them by the retailers. But high stakes involved in making money through devious means are temptations enough for engaging high paying consultants to find loopholes in the law so that rules can be circumvented. Here is an example of a multinational food player blatantly exploiting the vulnerability of the consumer to claims on good health and well being

"The Federal Trade Commission barred Kellogg's last year from running ads saying Mini-Wheats are "clinically shown to improve kids' attentiveness by 20 percent." To claim "benefits to cognitive health, process or function provided by any cereal or any morning food or snack food," was a no-no, unless the claims were true. But the F.T.C.'s order covered only cognitive abilities. So just as it was signing its consent, Kellogg's was starting a new campaign in which "Snap, Crackle and Pop" called out to parents from the Rice Krispies box promising to help "support your child's IMMUNITY."

What is so galling is that a giant like Kellog's receives only a notice and a negotiated settlement is reached with the concerned authorities! A spurious claim like the one made by this company should have attracted severest strictures and massive punitive steps. Probably the common perception of many consumers that high and mighty amongst the processors "can get away even with murder" seems to be true. Otherwise it is difficult to understand the impunity with which the same company is scheming to repeat the same offense in other products even before the ink has dried in the negotiated agreement!
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com