Food, fraudulent food

Over the past decade, food fraud has emerged as a particularly pervasive issue, both internationally and within the UK. In recent years, the UK has experienced several high-profile food fraud scandals, involving the mislabelling and adulteration of food products and so raising concerns about the integrity of the food supply train and consumer safety.

As highlighted in the first edition of the KN Food Safety and Hygiene Newsletter (which you can download at the bottom of this page), this issue came to particular public attention at the end of 2022 as the National Food Crime Unit confirmed a criminal investigation into alleged fraud within the meat industry. In 2023, the subject became even more prominent as a well-known retailer announced that it was linked with the alleged fraud.

However, the conclusion of this investigation, even if it leads to successful prosecutions, will not mean an end of the wider issue. There have been high-profile cases of food fraud before, and there will inevitably be more. And, by its nature, this issue will always be an important and emotive one to consumers. But is the government doing enough?

Mislabelling of pork raises the agenda

Whilst food fraud has undoubtedly existed for many years, it came to particular prominence when one of the most significant food fraud scandals hit the UK in 2013. It emerged that several products labelled as “pork” contained undeclared or substituted meat, including horsemeat. The scandal was exposed when tests conducted by the Food Safety Authority of Ireland revealed the presence of horsemeat in various beef and pork products. This revelation sparked outrage and led to a pan-European investigation.

In response, the UK government commissioned an independent review of Britain’s food supply chain, led by Professor Chris Elliott. The resulting report (the Elliott Review into the Integrity and Assurance of Food Supply Networks) was published in September 2014. As part of the government’s response, it established the National Food Crime Unit (NFCU) in December 2014. This specialised unit of the Food Standards Agency (FSA) is responsible for investigating and preventing food fraud, including the mislabelling and adulteration of meat products. The unit works closely with industry stakeholders, law enforcement agencies, and international partners to identify and prosecute those involved in fraudulent activities. The Scottish Food Crime and Incidents Unit (SFCIU) was established in 2015 in response to the recommendations in a separate report commissioned by the Scottish government.

The beef scandal, commonly known as the ‘horsemeat scandal’, also erupted in 2013, overlapping with the pork scandal. It was discovered that beef products sold in the UK and across Europe contained significant amounts of horsemeat, contrary to what was stated on the labels. This revelation not only raised concerns about false labelling but also highlighted issues surrounding traceability and the complexity of the food supply chain.

This was a wake-up call for the food industry and regulators.

To address the traceability issue, the government implemented the Food Information Regulations in 2014. These regulations require food businesses to provide accurate and clear information about the ingredients and origin of their products. Furthermore, the FSA introduced the comprehensive “Horsemeat Programme” to ensure the authenticity and integrity of meat products. This programme involves increased inspections, audits and DNA testing aimed at detecting and preventing horsemeat contamination.

Attempted deterrence

Over the years the government has implemented various legislative initiatives (see below) aimed at combatting food fraud, protecting consumers, and ultimately restoring trust in the food industry. This may be illustrated by the number of Acts and implementing regulations now in place.

Penalties for food fraud can include fines and, for officers, senior managers and other private individuals, imprisonment. However, compared to the penalties for more ‘mainstream’ white collar crimes, food fraud penalties may appear relatively lenient. For example, penalties for breach of the Food Safety Act 1990 can range from fines to imprisonment of up to two years; however, a breach of one of the general fraud provisions of the Fraud Act 2006 can include imprisonment of up to 10 years, while being convicted of money laundering under the Proceeds of Crime Act 2002 may lead to a sentence of 14 years behind bars.

The future of food fraud in the UK is undoubtedly a complex and evolving landscape. While it is difficult to predict with certainty, several trends and factors provide insight into what the future might hold – both challenges and opportunities.

Challenges

Supply Chain Complexity: The increasing complexity of global food supply chains poses challenges in terms of traceability and vulnerability to fraud. As supply chains become more interconnected, it becomes harder to monitor every step of the process. This complexity means companies will need to adopt robust supply chain management systems, including carrying out regular audits, inspections and verification, to ensure the integrity of the food chain.

International Cooperation: Collaboration with international partners, including agencies in the EU, will continue to be crucial in combating cross-border food fraud. Information sharing, joint investigations, and harmonisation of standards and regulations will aid in detecting and preventing fraudulent activities. Establishing robust mechanisms for cooperation and intelligence sharing will be essential in addressing the evolving nature of food fraud.

Opportunities

Technological Advancements: Technology will play a crucial role in detecting and preventing food fraud. Advanced analytical techniques, such as DNA testing, spectroscopy and blockchain technology, offer enhanced traceability and transparency in the food supply chain. These innovations have the potential to deter wrongdoing and enable faster detection of fraudulent activities.

Regulatory Adaptation: The UK has undergone significant regulatory changes following its departure from the EU. The development of new regulations and standards specific to the UK presents an opportunity to address vulnerabilities and strengthen controls against food fraud. The government’s commitment to maintaining high food safety standards and its focus on preventing food fraud will likely shape future legislation and enforcement efforts.

Consumer Awareness and Demand: Increasing consumer awareness and demand for transparency and authenticity in food products will drive the need for stronger anti-fraud measures. Consumers are becoming more informed and vigilant, seeking products with clear labelling and trustworthy sourcing. This demand can incentivise businesses to implement stricter controls and invest in technologies that provide greater visibility into their supply chains.

Big Data and Analytics: The use of big data analytics and artificial intelligence can revolutionise food fraud prevention. By analysing vast amounts of data, including supply chain information, purchasing patterns, and consumer feedback, predictive models can identify potential fraud hotspots and early warning signs. These data-driven approaches have the potential to proactively detect and prevent food fraud incidents.

Industry Collaboration and Certification: Collaboration within the food industry, including sharing best practices, standards, and protocols, will be crucial in combating food fraud. Industry-led initiatives and certifications, such as the British Retail Consortium (BRC) Global Standards, can help improve best practices, promote transparency, and create a unified approach to tackling fraud.

Which way next?

The UK government says that it aims to maintain high food safety standards and tackle food fraud robustly. It has outlined various initiatives such as enhanced surveillance and intelligence gathering to increase the number of prosecutions brought, as evidenced by the recent cases concerning the mislabelling of beef by Booths, a leading North England supermarket chain (see the first edition of our newsletter), as well as an investigation into a food processing company accused of selling thousands of tons of mislabelled pork.

The UK government would no doubt argue that its commitment to tackling food is evidenced by the increase in funding to the NFCU, which rose from £3.2m to £5m between 2018 and 2022. However, when compared with the scale of the problem as well as vastly higher funding promised elsewhere (in November 2023, the Prime Minister promised £8 billion of extra funding for road repairs), and taking account of inflation, this figure does not seem so high.

Significantly increased criminal penalties would doubtless send a clear message that this is an area of zero tolerance (something the public would likely support), although this can itself be a politically charged issue, particularly given huge backlogs in the courts and the current overcrowded state of UK prisons. Furthermore, there has been a noticeable trend away from criminal investigations and penalties and towards alternative means of enforcement in many other sectors – the Environment Agency says that it will regard criminal prosecution as a last resort, and makes extensive use of civil sanctions such as variable monetary penalties (where the cap on penalties has recently been lifted).

Key food fraud legislation

Food Safety Act 1990: This Act provides the overarching  legal framework for food safety and hygiene in the UK. It prohibits the sale of food that is unfit for human consumption, falsely described, or adulterated. Offences under this act include selling food with intent to deceive, selling food not of the nature, substance or quality demanded, and the possession or control

of food for sale that is not of the nature, substance or quality demanded. Penalties can range from fines to imprisonment, depending on the offence. For more serious offences, imprisonment of up to two years and/or an unlimited fine can be imposed.

Food Safety and Hygiene (England) Regulations 2013: These regulations set out specific requirements for food businesses in England to ensure food safety and hygiene. They cover areas such as general food hygiene, temperature control and procedures for handling, processing and storing food. Compliance with these regulations is deemed as essential for preventing food fraud incidents. Penalties for noncompliance may include fines and, in more severe cases, imprisonment for up to 2 years.

Food Information Regulations 2014 and Food Information (Amendment) (England) Regulations 2019: These regulations aim to provide consumers with accurate and clear information about the food they purchase. They require food businesses to provide information on allergens, nutritional values and the origin of certain ingredients. Clear labelling can help prevent false or misleading descriptions of food or its nature, substance or quality, which are common forms of food fraud and can amount to criminal offences under section 15 of the Food Safety Act 1990.

Fraud Act 2006: Food fraud offences that involve deliberate deception, false representation, or abuse of position fall under the general fraud offences set out in the Fraud Act 2006.Penalties for fraud offences can include imprisonment of up to 10 years and/or fines, depending on the severity and scale of the fraud committed.

To keep up-to-date on food safety prosecutions and enforcement, as well as key changes in the law, make sure you look out for future edition of KN’s Food Safety and Hygiene Newsletter.

 

More informaTION 

For more information on any of the issues mentioned in this blog, please contact a member of our criminal litigation team.

 

aBOUT THE aUTHORS 

Nicola Finnerty is a leading criminal defence expert in white collar and business crime, general criminal defence, and proceeds of crime and asset forfeiture.

Úna Campbell works on a broad range of matters, including criminal defence and police investigations; white collar and financial crime; international crime and extradition; private prosecutions and public inquiries.

 

read our newsletters 

Food Safety and Hygiene Newsletter Edition 1 - July 2023

Food Safety and Hygiene Newsletter Edition 2 - February 2024