Legal development

Food Standards in Australia – Proposals and Emerging Issues

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    On 14 October 2024, Food Standards Australia New Zealand (FSANZ) published its 2023-2024 Annual Report. FSANZ CEO Dr Sandra Cuthbert outlined major achievements in food standards development, food safety, surveillance and evidence, and collaboration and stakeholder engagement. Dr Cuthbert also noted several leadership and organisational changes, including a new General Manager of Risk Management and Intelligence.

    The report also provided information on annual performance statements, management and accountability, and financial statements.

    Objectives and functions

    The objective of the FSANZ Act 1991 is to ensure a high standard of public health protection throughout Australia and New Zealand. It has the following four goals:

    • A high degree of consumer confidence in the quality and safety of food produced, processed, sold in or exported from Australia and New Zealand.
    • An effective transparent and accountable regulatory framework within which the food industry can work efficiently.
    • The provision of adequate information relating to food to enable consumers to make informed choices.
    • The establishment of common rules for both countries thereby promoting consistency between domestic and international food regulation measures without reducing the safeguards that apply to public health and consumer protection.

    Summary of key proposals from 2023–2024

    The Public Governance, Performance and Accountability Act 2013 (PGPA Act) requires that FSANZ share annual performance statements and detail the results the agency achieved toward its goals. In 2023-2024, some of the progress made included the following:

    Review of infant formula product regulation

    The agency’s proposal to vary the regulatory requirements for infant formulas was approved in June 2024 after the first comprehensive review of infant formula regulation in more than 20 years. The updated infant formula regulation considers the latest scientific evidence, market developments, changes in the international regulatory environment, and revised Australian and New Zealand policy guidance.

    Key amendments include new formula composition obligations, the prohibition of the cross-promotion of similar products on infant formula product labels, mandates for the nutritional information panel information that will better assist caregivers in making informed choices, and restrictions on the sale of infant products with special medical purposes to ensure appropriate access to and use of these specialised products. In addition, there are provisions on vital safety information about the preparation, use, and storage of infant formula products. The new requirements are subject to a transition period of five years.

    Genetically modified foods and new breeding techniques

    The agency continued its work on a proposal to address new technologies in genetic modification by clarifying which foods should be regulated as genetically modified under the Food Standards Code. A second and final round of public consultation was held from 30 July to 10 September 2024. The agency will now decide whether to approve the proposed changes to the Food Standards Code.

    FSANZ also had the world’s first approval of an application to permit food from a disease-resistant genetically modified (GM) banana. The banana line was modified to provide resistance to Panama disease TR4 and while a licence for the commercial cultivation of the GM banana plant was granted, there are no plans to commercialise the cultivar.

    Added-sugar labelling

    The agency continued its work on a proposal to include added-sugar information on nutritional labels. The draft also clarifies and defines the term “added sugars” for the purposes of making voluntary nutritional content claims.

    Review of highly concentrated caffeine products

    The agency furthered its review of the permissions for adding caffeine to sports food and general food. The agency completed the risk assessment for this work in 2021-2022, with a second round of consultation at the end of 2024.

    Review of sports food regulations

    The agency released two consultation papers seeking public comment on sports food regulation in Australia and New Zealand, particularly in respect of formulated supplemental sports food. The results of the consultation will inform the agency’s preferred regulatory approach.

    Labelling of alcoholic beverages

    The agency advanced two proposals concerning the labelling of alcoholic beverages. The first involved completing consumer research to determine how best to present energy labelling. The second included a public consultation on options to clarify requirements for making voluntary nutritional content claims about carbohydrate and sugar in alcoholic beverages.

    Following a request from food ministers, FSANZ has also undertaken consumer research to better understand whether carbohydrate and sugar claims on alcoholic beverages are misleading and whether they influence consumers’ purchasing decisions. The findings of this research will be considered as work on this proposal continues.

    Emerging issues

    During 2023-24, the agency continued to proactively assess emerging food issues. FSANZ considered more than 100 potential new food concerns, including those being managed by other international bodies. Examples of these are international risk assessments for aspartame, titanium dioxide, natamycin, and nicin as food additives; international risk assessments initiated by the WHO on perfluorinated chemicals, with a focus on methodologies, mixtures, and health impacts; and a code of practice for mycotoxins, which is being progressed through the Codex Committee on Contaminants in Food.

    The agency also tracked a proposal for a Code of Practice for acrylamide. In addition, FSANZ issued a call for information on new risk management measures to reduce exposure levels and contaminants in spices. This action was based on the U.S. Food and Drug Administration (FDA) identification of lead chromate being used as an adulterant in cinnamon products for economic reasons. Sellers were adding lead to increase the weight of the spice and to add colour. The high lead levels in food products caused a number of illnesses in the U.S. and resulted in several large product recalls. As a result, FSANZ has added the analysis of lead in cinnamon and mixed spice products to the current Australian Total Diet Study to establish lead levels in the herbs and spices available to Australian consumers.

    In addition, FSANZ addressed potential food safety issues associated with the use of recycled materials in food packaging by supporting the development of a Code of Practice (through Codex) for food packaging that is made from recycled materials. It also monitored an increase in beverages which are available mainly through online sales and contain ingredients that are said to enhance brain function, such as memory, mood, and performance, as well as following the increasing use of D-allulose as a sugar substitute in foods and beverages produced overseas. FSANZ is currently assessing an application for D-allulose as a novel food. The ingredient is already approved for use in certain countries.

    In its future planning work, the agency also assessed edible insects, which have been suggested as an alternative source of dietary protein and nutrients. However, measures should be in place to ensure their microbiological and chemical safety as a food source.

    Commentary

    The trends evident in food product safety are high on the agenda of regulators worldwide. In particular, many regulatory agencies are focusing on vulnerable users, such as infants, as well as higher-risk products, such as alcohol and products containing caffeine or allergens. These are also the types of products that are more likely to be involved in legal actions. Litigation and public reputational damage are paramount concerns and continue to become headline news.

    Environmentally focused issues, such as genetically modified organisms, are hotly debated around the world. Australia is currently taking a slightly less conservative stance than other countries.

    FSANZ continues to be transparent about its goals. Companies should carefully consider the regulator’s agenda when planning for product development, as well as how the agency might respond when product incidents arise and enforcement actions are taken.

    This article was originally published as part of the Sedgwick brand protection Australian Recall Index.

    Other author: Miran Bahra, Associate

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.