Argentine Congress passed the Front-of-Package Labelling Law
By María Luisa Santa María, Mariano Peruzzotti and Antonella Balbo.
The Bill on the Promotion of Healthy Eating, also known as the “Front-of-Package Labelling Law” (the “Law”), was passed by the Argentine Congress.
The Senate approved the Bill on October 29, 2020. Then, it was approved by the General Legislation, Public Health and Social Action, Consumer Protection, and Industry Commissions of the House of Representatives, that rendered a favorable opinion for the Bill to be discussed in the plenary session. The Bill was approved by vast majority at the House of Representatives.
We discuss below the main provisions of this new legislation.
I. The Law’s scope
The provisions of the Law cover all individuals or legal entities who manufacture, produce, process, fractionate, wrap, entrust to wrap or manufacture, distribute, commercialize, import, or have placed their trademark, or integrate the market chain for food and non-alcoholic beverages for humans in Argentina.
II. Obligation to include warning label
The packaging of food and non-alcoholic beverages without the consumer’s presence must include front-of-package warning labels when the final composition of the product contains critical rates of nutrients (sugars, sodium, saturated fats and total fats) and the amount of calories exceed the values set forth in the Law.
The labels must be permanent (i.e. cannot be erased or removed). The packaging must include one label for each critical nutrient, namely: “EXCESS IN SUGAR”; “EXCESS IN SODIUM”; “EXCESS IN SATURATED FAT”; “EXCESS IN TOTAL FAT”; “EXCESS IN CALORIES”.
The label must meet the following requirements:
- Adopt the shape of a black color octagon with white borders and capital letters.
- The size of each label may not be less than 5% of the front package.
- It cannot be partially or totally covered by any other element.
If the product contains sweeteners, the package must include the following warning phrase immediately below the warning label: “CONTAINS SWEETENERS, NOT RECOMMENDED FOR CHILDREN”.
If the product contains caffeine, the package must include the following warning phrase immediately below the warning label: “CONTAINS CAFFEINE. AVOID IN CHILDREN”.
The obligation to use the labels and warning phrases comprises boxes and any other kind of packaging containing the relevant products.
The labels and warning phrases must be placed separately and independently from the list of ingredients and nutrition facts.
III. Maximum reference values
Maximum reference values for critical nutrients must be ranged within the limits established by the Pan-American Health Organization Nutrient Profile.
The controlling authority shall set the specific parameters to be used for the determination of the values concerning calories.
IV. Excluded from the obligation to include warning stamps
Common sugar, vegetable oils, dried fruits and common table salt are excluded from this regime.
V. Mandatory declaration of sugar
The quantitative content of sugar must be declared on the nutrition facts and information.
VI. Prohibitions on packaging
Wrapped food and non-alcoholic beverages that contain a warning label may not include in their packaging:
- complementary nutritional information;
- logotypes or phrases stating the sponsorship or endorsements of scientific societies or civil associations;
- children’s characters, animations, cartoons, celebrities, athletes or pets, interactive elements, the delivery or promise of delivery of gifts, prizes, accessories, stickers, visual-space games, digital downloads, or any other element, as well as the participation or promise to participate in contests, games, sports, musical events, theatre or cultural events, together with the purchase of any of the relevant products.
VII. Advertising prohibitions
The Law bans the advertisement, promotion and sponsorship of wrapped food and non-alcoholic beverages containing at least one warning label specifically addressed to children and teenagers.
As for the remaining products, those containing at least one warning label shall comply with the following rules:
Complementary nutrition facts that inform positive and/or nutritional features of the products shall not be highlighted;
The warning label must be visible each time the product is showed;
Ads cannot include children’s characters, animations, cartoons, celebrities, athletes or pets, interactive elements, the delivery or promise of delivery of gifts, prizes, accessories, stickers, games, visual-space, digital downloads, or any other element, as well as the participation or promise to participate in contests, games, sports, musical events, theater or cultural events.
Products cannot be delivered free of charge.
VIII. Promotion of healthy eating in educational establishment
Food and non-alcoholic beverages containing at least one warning label cannot be offered, commercialized, advertised, promoted or sponsored in educational establishments.
Additionally, healthy food education policies are to be promoted in educational establishments.
IX. Controlling authority
The enforcement authority shall be determined by the Executive Branch.
The Provinces and the City of Buenos Aires will act as local enforcement authorities.
X. Sanctions
Infringements to the Law shall be subject to the penalties set forth in the Fair Trade Decree No. 274/2019, namely:
- Formal warnings.
- Fines ranging from 1 to 10,000,000 Mobile Units, which is currently equivalent to Pesos 55,29 and 552,900,000 respectively (USD 0,54 and USD 5,447,290 at the current official exchange rate).
- Suspension from the list of National Suppliers for up to 5 years.
- Loss of licenses, concessions, privileges, tax benefits or credit benefits.
- Closure of the business for up to 30 days.
XI. Term to adjust to the legislation
The Law grants a grace term of 180 days from its sanction to comply with its provisions.
For MSMEs (i.e., micro, small, and medium-size enterprises) such term will be of 12 months.
An extension of another 180 days shall be granted for specific cases in which reasonable grounds and reasons can be showed.
XII. Final comments
The Law must now be enacted by the National Executive Branch and published in the Official Gazette to enter into force. This is likely to take place in the coming days. Then, several aspects of the Law are expected to be regulated by the relevant authorities.
Our Firm has broad experience in advising clients on labeling, Fair Trade regulations, advertising and related matters. We would be pleased to answer any question you may have on this specific Law as well as any other related aspects.
For further information please contact: mlsantamaria@ojambf.com and/or mperuzzotti@ojambf.com.
