The cost-of-living crisis, health, sustainability, and technology are core areas of both growth and concern in today’s food and drink sector. In response, a number of legal changes are anticipated, impacting formulations, labelling, pricing and governance.

The legal landscape in the food and drink sector will continue to evolve over the next 12 months. “This has never been a sector to stand still, and 2024 will be no exception,” Lisa Gilligan, Partner at national law firm Freeths, told Ingredients Network.

Sustainable diligence

The European Parliament and Council has reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDD). Although the text is not final, the directive’s full implementation is expected by the end of 2024.

Placing a civil liability on climate change, the directive requires large companies to adopt a transition plan for climate change mitigation. It aims to bolster access to justice for affected individuals and establishes a five-year period to bring claims. Under the CSDD, businesses must end professional relationships with partners that cause detrimental impacts if prevention or resolution is not possible.

Putting an end to greenwashing is also expected to be top of the priority list for regulators. “I would also anticipate ‘greenwashing’ will remain high on the regulatory agenda with claims being ever more scrutinised,” says Gilligan.

Deregulation of novel foods in the UK

“We’re also expecting that a new streamlined process for launching a novel food will be introduced during the year,” says Gilligan. At present, launching a new food in the UK, must go through and pass a lengthy approval process which the Food Standards Authority (FSA) governs.

In 2024, the deregulation of novel foods and gene editing are set to transform the future of the food industry. In the UK, newly developed foods, often produced using new technology or processes, and foods traditionally eaten outside of the EU/UK before 15 May 1997, are classified as ‘novel foods’.

The UK government has commissioned research into novel food regulation to reform the process and reduce barriers to bringing such foods to market. “The new process is expected to reduce barriers to bringing novel foods into the market,” says Gilligan. “It is anticipated that there will be developments in the lead-up to the FSA’s board meeting in March 2024.”

High-fat, salt, and sugar (HFSS) foods

One key area to consider is the discrepancies in restrictions among the devolved nations in the UK: Scotland, Wales, and Northern Ireland. In an effort to combat childhood obesity, the UK Government introduced new restrictions on the promotion, location, and advertising of high-fat, salt, and sugar (HFSS) foods.

As food regulation is devolved in the UK political system, much of the new HFSS legislation only applies in England or England and Wales. Going forward, food businesses in different parts of the UK may need to adhere to different rules regarding the marketing, advertising, and sale of HFSS products.

Artificial intelligence (AI) and tech governance

“AI and tech will be front and centre of developments in 2024 as illustrated by the FSA’s consultation for a new framework under the Genetic Technology (Precision Breeding) Act 2023, which will be published this year,” says Gilligan.

The framework is intended to regulate precision-bred organisms used for food. The consultation was launched as part of the government’s intention to use new technologies in the farming and food production industries.

Allergens

In September 2023, the UK’s FSA updated its guidance on food allergen labelling and information requirements. In doing so, it provided important clarifications over producer and retailers’ adoption of the ‘may contain’ label.

Recommendations centre on increasing clarity and consistency in its use. “We’re also expecting further improvements to the provision of allergy information in the non-prepacked sector which remains a serious public health issue,” Gilligan says.

Subscription models

Another important regulation to be aware of is the UKs Digital Markets, Competition, and Consumer (DMCC) Bill. The bill will establish new rules governing subscriptions, affecting businesses operating a subscription model.

The DMCC Bill introduces a new regime that grants additional cooling-off rights to consumers who are offered free trials. It also requires a ‘nutritional information’ style summary of the subscription to be shared before purchase. Additionally, the legislation follows the lead of Germany and France in implementing ‘cancellation buttons’ to make the cancellation process as easy as signing up.

Improving access

The upcoming European Accessibility Act (EAA) is relevant for businesses based in the European unio (EU). The EAA aims to enhance the ability of individuals with disabilities to access goods and services within the EU, including in relation to e-commerce. Businesses falling under the scope of the EAA must ensure compliance by 28 June 2025.

Pricing practices

In the UK, the Competitions and Markets Authority is continuing to investigate pricing practices within the retail sector as a continuation of their response to the groceries ‘super-complaint’ by Which? in 2015. The complaint highlighted that inconsistencies with unit pricing may prevent customers from identifying the best deal.

“They have outlined that there will be a further review into compliance with the Price Marking Order 2004 to check whether stores are displaying unit prices,” says Gilligan. “It is likely that they will publish the findings of their investigation in 2024.”

Political landscape

Leadership changes can also prompt strong shifts in legislative priorities and implementation. We may see evidence of this in the UK, as it moves towards an anticipated general election in June 2024.

“The strong likelihood that there will be a general election in the second half of the year will also no doubt have an impact on any legislation that is due to come into force,” says Gilligan. “What may appear to be a regulatory focus as we embark on the year may radically change as it draws to a close.”