Might regional product adaptations potentially trigger doubts in consumers about the authenticity of international brand products?
In the latest instalment of the food expert series, Katie Vickery and Katrina Anderson delve into the implications of the proposed New Deal for Consumer regulations, a set of regulations that could significantly alter the way global manufacturers operate in regional markets.
Proposed on 10th October 2018, the New Deal for Consumer regulations, such as New York's recently passed *Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Business Practices Act)*, aims to address concerns about product quality differences in regional markets. The FAIR Act, if signed into law, will expand consumer protection laws by prohibiting not only deceptive but also unfair and abusive business practices, and extends protections beyond consumers to include businesses and non-profit organisations.
For global manufacturers, the implications are far-reaching. The FAIR Act broadens what constitutes unlawful practices to include unfair and abusive acts, which could affect how manufacturers market and formulate products locally. Practices once considered acceptable might now be actionable under this expanded statute.
The Act removes the judicially-created "consumer-oriented" doctrine, allowing enforcement actions even when harm is limited to a single entity or is business-to-business. This broadens the risk for manufacturers whose product formulations or marketing could be challenged, even locally or in private transactions.
By incorporating federal consumer protection standards, manufacturers will need to ensure compliance not only with state-specific rules but also with broader federal concepts of what constitutes unfair or abusive practices, complicating adherence to multiple regulatory frameworks.
The expanded enforcement power of the state Attorney General and widened definitions of unlawful conduct could lead to more frequent legal challenges regarding product formulations, labeling, or marketing claims made by global manufacturers in local markets.
Global manufacturers may need to reformulate products or adjust marketing strategies to avoid classifications of unfair or abusive practices under the new rules, especially in markets like New York where this law could set a precedent for other states aiming to fill the federal regulatory enforcement gap.
The experts also discuss the rationality behind regional product adaptation, a common practice among global brands who often adapt product formulations for local taste and success. However, the New Deal for Consumer regulations could change this approach, requiring manufacturers to justify any differences in product formulations.
The potential impact of these new regulations on the production of food products is a topic of great interest, and the experts encourage viewers to stay tuned for further updates. Viewers are also encouraged to register for retail and consumer updates to stay informed about this evolving landscape.
The video, the third in the series, is now shareable on LinkedIn, Facebook, and through email. The experts assure viewers that they can look forward to the next 'food' interview in the series. As the New Deal for Consumer regulations continue to make headlines, global manufacturers must anticipate heightened scrutiny of their local product formulations and business practices to ensure compliance and maintain consumer confidence.
- As the New Deal for Consumer regulations could affect how manufacturers market and formulate products locally, the retail and finance sectors may see shifts in product offerings and business strategies among global manufacturers.
- In the retail industry, businesses and non-profit organizations could face expanded consumer protection laws under the FAIR Act, potentially leading to changes in business practices and increased legal scrutiny of product formulations, labeling, and marketing claims.
