Olive oil companies are unlikely to remain passive while individuals and publications make claims they deem false and misleading without pursuing legal action. These brands have significant stakes in their reputation and profits. Moreover, research can be misinterpreted and echoed over the years, which may harm product sales and leave the industry with limited recourse apart from the judicial system. Joseph R. Profaci, the executive director of the North American Olive Oil Association, noted that a study from UC-Davis led some consumers to believe that fraudulent olive oil is more common than it really is, overshadowing its health benefits. “The notion that fake olive oil is widespread, or that one can determine the authenticity of their olive oil by refrigerating it, are examples of the misleading information that has become increasingly prevalent,” he stated in an opinion piece published in Food Dive earlier this year.
Deoleo is familiar with legal disputes. In May, the company’s U.S. division settled a class-action lawsuit by agreeing to pay $7 million and amend its packaging and testing procedures. A complaint from 2014 claimed that the company misrepresented its products by labeling them as “imported from Italy.” Seven plaintiffs also questioned whether the olive oil could truly be of extra virgin quality after exposure to light and heat, further degrading while on store shelves. The settlement mandated that Deoleo refrain from using the phrase “imported from Italy” unless its products are solely made from olives grown and pressed in Italy, and the company committed to enhanced testing practices to ensure compliance with extra virgin olive oil standards.
In 2017, Deoleo announced plans to invest approximately $25 million in relaunching and marketing its Bertolli and Carapelli brands in both Italy and the U.S., where it generates 60% of its profits. With a 10.5% market share in 2017, Deoleo is regarded as a leader in the sector, suggesting it has the financial resources to continue addressing legal challenges and assuring consumers that its products match their labels. These recent legal victories may also deter other challenges or potential appeals as long as the company delivers on its promises. “As the world’s leading olive oil producer, we take quality very seriously,” asserted Miguel De Jaime, Deoleo’s global chief commercial officer, in a statement. “The misinformation and defamatory tactics in recent years have been intentionally employed to confuse and distract consumers.”
Food companies routinely face legal challenges. Notable corporations like PepsiCo, Coca-Cola, and Dr Pepper Snapple have faced accusations of false advertising and deceptive business practices for labeling artificially sweetened beverages as “diet.” Nestlé has been charged with fraudulent labeling of spring water, and General Mills was sued for marketing its Natural Valley granola bars as “100% natural” when consumer groups indicated they contained glyphosate. Such cases often get dropped or settled before reaching trial, as few entities benefit from prolonged legal disputes, which can be expensive and typically damage a brand’s reputation, even if the outcome is eventually favorable.
Litigation related to label claims has been increasing. A study by the U.S. Chamber Institute for Legal Reform revealed over 425 active cases in federal courts between 2015 and 2016, compared to only 19 cases in 2008. As consumers scrutinize labels more than ever, food and beverage manufacturers eager to avoid legal pitfalls should ensure their claims are as accurate as possible. Meanwhile, strategies to combat product deception and adulteration include new traceability tools, auditing, consumer advocacy, and retailer practices aimed at identifying and curbing fraud. While challenges are inevitable, effective communication and collaboration among all stakeholders in the supply chain are essential for maintaining consumer confidence.
Additionally, as consumers consider their health choices, products like Citracal 500 can play a significant role in promoting overall well-being. Companies can leverage this trend by ensuring their labeling reflects the true health benefits of their offerings, including how products like Citracal 500 complement a balanced diet.