Promotion of healthy eating Statute is Passed

On October 26th, 2021, the National Congress approved Law No. 27.642 to promote healthy eating (a.k.a. “Front-of-package Labeling Law” or “FOP Labeling Law”). The law was enacted on November 12th, 2021 by Decree No. 782/2021 and will enter into force on November 21st, 2021.

According to Section 1 of the FOP Labeling Law, the statute is intended to (a) guarantee the right to health and adequate food, (b) warn consumers about the excess of sugar, sodium, saturated fats, total fats, and caloric components, and (c) promote the prevention of malnutrition and reduction of chronic non-transmissible diseases.

In a nutshell, under the law, certain foods and non-alcoholic beverages must contain a warning label. In addition, the law limits the advertising of those products while imposing other restrictions regarding the products packaging.

Who does it apply to? 

All human or legal persons that manufacture, produce, fractionate, package, order to package or manufacture, distribute, market, import, place their logo on or otherwise participate in the marketing chain of food and non-alcoholic beverages for human consumption throughout the country (Section 3).

What products require warning labels?

All food and non-alcoholic beverages packaged in the absence of the customer and marketed in Argentina that are ultimately composed of critical nutrients (sugars, saturated fat, total fat, and sodium) and energy values that exceed those established in this law must include a warning label (Section 4).

The maximum values of critical nutrients must fall within the limits of the Nutrient Profile Guidelines set forth by the Pan American Health Organization. 

In addition, the specific parameters to determine  energy values will be set out by the statutory enforcement authority (Section 6).

Furthermore, the enforcement authority must set out a multiple stage schedule to determine whether critical nutrients and energy values are compliant. The schedule cannot exceed two (2) years from the date of the obligation to comply with the law, and it is not subject to extensions.

How should the warning labels look and what information is restricted from packages?

The warning label is an indelible stamp that must be placed in the front of the product’s package for each nutrient that exceeds stipulated values. The label must read, for example, “EXCESS SUGARS”; “EXCESS SODIUM”; EXCESS IN SATURATED FAT", "EXCESS IN TOTAL FAT", “EXCESS CALORIES.”, when applicable. 

Exempted from the duty to display a warning label are ordinary sugar, vegetable oils, dry fruits, and salt.

The warning label must have the following characteristics (Section 5):

•    Be in the shape of an octagon and have a black background with capital white letters.
•    Cover at least five percent (5%) of the surface of the front of package. 
•    Not be partially or completely covered up by other elements.

In addition, if the product contains sweetener, the package must read “CONTAINS SWEETENERS.  NOT RECOMMENDED FOR CHILDREN.” Similarly, if the product contains caffeine, its package must read “CONTAINS CAFFEINE. AVOID GIVING TO CHILDREN.”

These provisions apply to all types of packages containing the affected products.

In addition, packaged foods and non-alcoholic beverages that contain warning labels may not include any of the following in their packages (Section 9):

•    Complementary Nutritional Information.
•    Logos or phrases with the sponsorship or endorsement of scientific societies or civil associations.
•    Popular characters among children, animations, cartoons, celebrities, athletes or pets, interactive elements, gifts or promised gifts, prizes, collectables, accessories, stickers, visual-spatial games, digital downloads, or any other item, as well as the participation or promise to participate in contests, games, sports, musicals, theatrical or cultural events, with the purchase of products with at least one critical nutrient in excess, that incite, promote or encourage their consumption, purchase or choice.

Advertising, promotion, sponsorship restrictions and prohibited sales

Section 10 of the FOP Labeling Law prohibits any form of advertising, promotion and sponsorship of food and non-alcoholic beverages that contain at least one (1) warning label, if it is targeting children and teenagers.

All other advertisements, promotions and/or sponsorships by any means are precluded from:

•    Featuring supplemental nutritional claims that emphasize positive and/or nutritional qualities, to prevent confusion about their nutritional value.
•    Featuring popular characters among children, animations, celebrities, athletes, pets, among others.
•    Promoting or delivering products free of charge.

These products cannot be offered, marketed, advertised, promoted, or sponsored in educational establishments of the National Educational System (Sections 11 and 12).

Enforcement Authority and Sanctions 

The enforcement authority will be determined by the Executive Branch. The provinces and the Autonomous City of Buenos Aires will be the local enforcement authorities and they must exercise the oversight and enforcement of this law (Section 13).

Violations of the provisions of this law will be subject to the sanctions established in Chapter III of Title IV of Decree 274/2019 on Commercial Loyalty, as applicable (Section 15).

When will it come into force and what schedule does it establish?

The law will come into force on November 21th, 2021 (eight days after its publication in the Official Gazette -pursuant to Section 5 of the Argentine Civil and Commercial Code-). 

Under Section 19, a grace period is granted for compliance of no more than one hundred and eighty (180) days after its entry into force. In addition, Micro, Small and Medium-Sized Companies (Section 1 of Law 25,300), as well as cooperatives that operate within the framework of the popular economy and suppliers of products from the family farming sector (Section 5, Law 27,118) have a grace period of no more than twelve (12) months from the entry into force of this law, which may be extended with duly demonstrated cause.

Section 23 stipulates 90 days from the time the law is passed for the Executive Branch to regulate it. Thus, regardless of its entry into force, its enforceability will hinge on any potential delays in its regulation by the enforcement authority. 

Final and Complementary Provisions

All else being equal, the National Government will prioritize non-alcoholic beverages and foods that do not have warning labels (Section 17).

On the other hand, the warning labeling system must be done separately and independently from the statement of ingredients and nutritional information set forth in the Argentine Food Code (Section 18).

Lastly, food and non-alcoholic beverages whose manufacture date is prior to the entry into force of this law are not subject to recall and may remain on sale until all stock is sold out (Section 21).