5 Legal Tips for Labelling and Packaging at FMCG Businesses

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Table of Contents

• 1. Include Everything You Need on the Label
• 2. Pay Close Attention to Packaging Procedures
• 3. Ensure Your Claims Are True
• 4. Protect Important Intellectual Property
• 5. Point Out Any Defects
• Key Takeaways

Businesses that sell fast-moving consumer goods (FMCG) often rely on labelling and packaging to attract customers and ensure efficient sales and inventory turnover. Products your FMCG business sells may include:

• packaged foods or candy;
• toiletries;
• drinks;
• dry goods; or
• cosmetics.

The labels and packaging of FMCG also act to protect consumers from misleading information and health hazards. If there is an issue with your labelling or packaging, this could cause problems that may stop your sales flow. Your packaging and labels must meet regulatory requirements that apply to the specific type of product and what you tell consumers about your products. This article will provide five legal tips for labelling and packaging at your FMCG business.

1. Include Everything You Need on the Label

New Zealand’s labelling laws require businesses to provide certain information on packaging to help consumers make informed decisions. Any packaged food must have a label with specific information about the product inside. The exact information will vary, but most labels need to include:

• date marking, being either the ‘use-by’ or best before date;
• a list of ingredients in descending order by weight;
• relevant warnings and advisory statements;
• the food’s name or description, which accurately reflects its nature and purpose;
• your business’ name and contact address, including where you are importing the product;
• allergen warnings for common allergens including peanuts, eggs, milk, gluten or soy;
• food quantity/weight;
• a nutrition information panel; and
• use and storage instructions.

A nutrition information panel is a table breaking down the nutritional makeup of your food. It contains information about the amount of energy, protein, carbohydrates, fat and other essential nutrients per serving. Most food labels need this requirement. However, some do not. These include:

• alcoholic beverages;
• prepacked filled rolls and sandwiches; and
• food in a package with less than 100cm² total surface area.

You risk misleading or endangering your customers if you do not include necessary information on your food labels. This is against the law, and you could face financial penalties.

2. Pay Close Attention to Packaging Procedures

Customers rely on your labels to be truthful and buy them based on that reliance. You need to ensure that your packaging procedures reflect what you say on your labels.

You must make sure your products are safe and suitable. Likewise, you must provide consumers with all the information required to make informed decisions before purchasing your FMCG’s. Importantly, ensure the language, disclaimers and warnings included on your label are truthful, accurate, and not misleading. While this is relevant for the entirety of the label, it is particularly important when identifying allergens, as incorrectly doing so can put your consumers at risk. 

3. Ensure Your Claims Are True

Any business in New Zealand that sells goods to consumers needs to comply with the Fair Trading Act. This law prohibits:

• general misleading or deceptive conduct;
• false or unsubstantiated claims; and
• unfair sales tactics.

Accordingly, ensure that what you say on your labels and packaging is valid and backed up by evidence. You should have this evidence prior to making the claim. This is especially true when you make claims about your products’:

• environmental impact;
• country of origin; and
• organic nature.

For example, if you claim on your packaging that your products are ‘100% New Zealand made’, then the majority of your food’s production process should be in New Zealand. Your customers would expect you to source your active ingredients in New Zealand.

4. Protect Important Intellectual Property

Your labelling and packaging will likely use your business’ Intellectual Property (IP), such as:

• product brand names;
• slogans; 
• logos; and
• product design.

Your intellectual property is a crucial business asset, and you can lose valuable customers if another business tries to pass off their products as your own. Therefore, you should consider what legal protections are available for your intellectual property, such as:

• trade marks;
• patents;
• designs; or
• trade secrets.

You may already have IP rights depending on how established you are in the market, such as rights that apply to unregistered trade marks. However, registering with the Intellectual Property Office of New Zealand (IPONZ) is the best way to protect your IP.

In New Zealand, copyright applies automatically when something original is published or created. Copyright is a tool to recognise your rights over your work. Where your business has created original work (such as in a logo), you may use the © symbol to help you demonstrate that you claim copyright in a particular work. However, using this symbol is not a legal requirement. 

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5. Point Out Any Defects

The nature of the FMCG business is that you quickly sell products, and there is high inventory turnover. When you deal with such a high volume of inventory, there may inevitably be minor defects with your products when it is time to sell. Such defects could include:

• damaged packaging;
• missing items; or
• items just past their best before date.

Customers may appreciate the chance to buy goods at a lower price if the only thing wrong with them is some dented packaging. If you sell these products, ensure that you clearly point out any defects when selling them to customers. You should not attempt to sell products that do not meet the usual standard without informing the customer first.

Key Takeaways

Fast-moving consumer goods (FMCG) are packaged goods that your business can quickly sell to consumers at a low cost. You need to take care not to mislead your customers with the labelling or packaging of your goods in your FMCG business. Ensure you meet proper labelling and disclosure requirements, and inform your customers of any minor defects. The exact information your label needs will depend on the kind of food you sell. However, most packaged food needs information about its weight or quantity, nutritional makeup, allergen details, and any warnings about the food itself.

If you would like more information or help with your labelling and packaging, our experienced regulatory and compliance lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.