The Real Story Behind 'Natural' Food Labels – Are You Being Misled?

The use of the word “natural” has been at the center of many debates and legal battles, and it's crucial for food companies to understand how to use it appropriately to avoid misleading consumers and potential litigation.

Understanding "Natural"

The term “natural” is commonly used in food marketing, but what does it really mean? Unlike terms like “organic,” which are regulated by the USDA, “natural” does not have a clear, universally accepted definition. Although the FDA has not engaged in rulemaking to establish a formal definition for the term "natural," they do have a longstanding policy concerning the use of "natural" in human food labeling. In November 1991, the FDA stated that the word “natural” is often used to convey that a food is composed only of substances that are not manmade and is, therefore, somehow more wholesome. The FDA also stated that it has not attempted to restrict the use of the term “natural” except for added color, synthetic substances, and flavors under §?101.22.

The definition of “natural claims” in the FSIS's Food Standards and Labeling Policy Book, in relevant part, states that the term “natural” may be used on labeling for meat products and poultry products if the applicant for such labeling demonstrates that:

1. The product does not contain any artificial flavor or flavoring, coloring ingredient, chemical preservative (as defined in §?101.22), or any other artificial or synthetic ingredient and
2. (2) the product and its ingredients are not more than minimally processed.

The FDA maintains its policy not to restrict the use of the term “natural” except for added color, synthetic substances, and flavors. It will also maintain its policy to interpret the term “natural” as meaning that “nothing artificial or synthetic (including all color additives regardless of source) has been included in, or has been added to, a food that would not normally be expected to be in the food”. However, this policy was not intended to address food production methods, such as the use of pesticides, nor did it explicitly address food processing or manufacturing methods, such as thermal technologies, pasteurization, or irradiation. The FDA also did not consider whether the term "natural" should describe any nutritional or other health benefit .

Bustamante v. Kind LLC

This lack of a clear definition has resulted in courts and state laws being expected to fill the gap and determine when a food can be considered “natural.” The most recent case is Bustamante v. Kind LLC, where the court evaluated the use of “natural” in food labeling. The case hinged on whether the "all natural" claim would deceive a reasonable consumer. Testimonies from the plaintiffs highlighted the varied and subjective nature of consumer expectations regarding "natural" products .

In Bustamante v. Kind LLC, the plaintiffs argued that Kind's "all natural" claim was misleading because the products contained synthetic ingredients. However, the court found that the plaintiffs failed to demonstrate that a reasonable consumer would be deceived by the "all natural" label. The court excluded the plaintiffs' expert testimonies, which were critical to their case, deeming them biased and not directly related to the plaintiffs' definitions of "natural." This decision reflects a broader judicial skepticism towards class actions challenging "natural" labels without clear, unbiased evidence.

Consumer Perception and Marketing Implications

Consumer perception of "natural" often implies healthiness, minimal processing, and the absence of artificial ingredients. Misleading "natural" claims can damage brand trust and consumer loyalty. Companies must adopt strategies for transparent and truthful marketing that meets consumer expectations.

Avoid Ambiguity and Be Transparent

• Clear Definitions: Clearly define what "natural" means on your label. This could include specifying that the product contains no artificial flavors, colors, or synthetic substances. Explicitly state what "natural" excludes, such as GMOs or certain preservatives.
• Ingredient Transparency: Provide detailed information about all ingredients. Transparency helps build consumer trust and reduces the risk of deception claims.

Align with Regulatory Guidance

• FDA Recommendations: While the FDA has not issued a formal definition, it generally suggests that "natural" means nothing artificial or synthetic has been included. Ensure that your use of "natural" aligns with this informal guidance.
• Avoid Misleading Claims: Make sure your claims do not mislead consumers into believing the product is healthier or safer purely based on the "natural" label.

Substantiate Claims with Evidence

• Scientific Backing: If you use the term "natural" to describe a product or ingredient, ensure you have scientific evidence to back up the claim. This includes proper sourcing and processing methods that align with consumer expectations of naturalness.
• Avoid Bias in Consumer Surveys: If conducting consumer perception studies, ensure surveys are unbiased and accurately reflect consumer understanding without leading questions.

Monitor Consumer Expectations

• Stay Informed: Regularly update your knowledge about consumer expectations and industry standards regarding "natural" claims. Consumer perceptions can vary and evolve over time, so staying informed can help you adapt your labeling practices accordingly.
• Educational Efforts: Educate consumers about what "natural" means in the context of your products. This can help align their expectations with your product descriptions .

Legal Review and Compliance

• Regular Legal Reviews: Have your labels reviewed by legal experts regularly to ensure compliance with current laws and regulations.
• Compliance with State Laws: Ensure that your labeling complies with specific state consumer protection laws, as interpretations can vary by jurisdiction.

Avoid Broad and Vague Claims

• Specificity: Avoid broad, vague, or overly general claims like "100% natural" unless every aspect of the product can be substantiated as such. Be specific about which aspects of the product are natural and why.
• Contextual Claims: Consider the overall context of the labeling. Ensure that other statements on the packaging do not contradict the "natural" claim.

Conclusion

To avoid legal challenges and consumer deception, food companies should use the term "natural" with precision and transparency. Clearly define what "natural" means on your labels, ensuring it aligns with FDA guidance and excludes artificial or synthetic substances. Provide full ingredient transparency to build trust and reduce the risk of misleading claims. Regularly review your labeling practices with legal experts to ensure compliance with state laws and consumer protection standards. By following these practices, companies can effectively use "natural" in a way that meets consumer expectations and avoids litigation.