In May 2016, the FDA posted new rules for Nutrition Facts Labels. Nutritional supplements companies, protein and bodybuilding supplement companies, weight loss product companies, and other food product manufacturers are required to update all their Nutrition Facts Labels by July 26, 2018. Manufacturers with less than $10 million in annual food sales have until July 26, 2019 to comply.
Having general and product liability insurance coverage is extremely important in light of changing rules and regulations. Even minor oversights could have big consequences. Veracity Insurance Solutions provides comprehensive insurance programs for the vitamin, nutraceutical, and supplements industry.
Correct labeling of your products is a crucial part of reducing your liability risk. Companies who failed to correctly label or market their products in the past have been subjected to large fines or lawsuit settlements.
Changes to the Nutrition Facts Label were implemented because we now know more about the strong link between diet and chronic illnesses such as diabetes and heart disease. Based upon new scientific knowledge, the FDA changed the rules on labeling packaged foods so consumers can be better informed about their food choices.
The new guidelines have a significant impact on the nutritional supplements industry as all nutritional labels must be updated on new product packaging and marketing collateral. The major changes to the nutritional label include:
- Increased type size for ‘Calories,’ ‘servings per container,’ and the ‘serving size’ declarations, plus bolding the number of calories and serving size declaration.
- Declaring the actual amount in addition to the percent Daily Value of vitamin D, calcium, iron, and potassium.
- The percent Daily value footnote must now read, “The % Daily Value tells you how much a nutrient in a serving of food contributes to a daily diet. 2,000 calories a day is used for general nutrition advice.”
- Added sugars in both grams and as % Daily Value need to be included on the label.
- The list of required nutrients that need to be declared has been updated.
- “Calories from Fat” is being removed.
- Daily values for sodium, dietary fiber, and vitamin D among others are being updated.
- Serving sizes are being updated based on the amounts of foods and beverages that people are actually eating.
- Packages which are between one and two servings, the calories and other nutrients will be required to be labeled as one serving if people typically consume it in one sitting.
- For products that are larger than a single serving but could be consumed in one sitting, manufacturers will now be required to put ‘dual column’ labels to indicate a ‘per serving’ and a ‘per package/per unit.’
Once your packaging has been updated to reflect the required changes, it’s a good idea to have a lawyer who specializes in FDA guidelines review all new labeling for compliance. Even after taking these protective measures, all food product manufacturers should hold general & product liability insurance to cover any contingency that may arise. Veracity Insurance Solutions can help you underwrite the right insurance coverage for your products.