Presented for IFSQN

July 31, 2020

Food Fraud:
Similarities and Differences
Between U.S. and Europe
Presented by Earl Arnold

© Copyright AIB International

May not be reproduced without written permission.
Agenda
• What is Food Fraud?
• Types of Food Fraud
• Examples of Food Fraud
• U.S. Regulatory Requirements
• Europe Regulatory Requirements
• GFSI and Other Third-Party Audit Requirements
– Similarities
– Differences

Presented for IFSQN- July 31, 2020

 What is Food Fraud?

Presented for IFSQN- July 31, 2020

Poll Question
What is Food Fraud?

A. An intentional act to create harm.

B. Deliberate and intentional substitution, addition, tampering, or
misrepresentation of food, food ingredients, or food packaging; or
false or misleading statements made about a product, for economic
gain.
C. An intentional act, not associated with food safety and would only
affect quality.

Presented for IFSQN- July 31, 2020

Poll Answer
What is Food Fraud?

A. An intentional act to create harm.

B. Deliberate and intentional substitution, addition, tampering, or
misrepresentation of food, food ingredients, or food packaging; or
false or misleading statements made about a product, for economic
gain.
C. An intentional act, not associated with food safety and would only
affect quality.

Presented for IFSQN- July 31, 2020

Definitions of Food Fraud
• No standardized definition
– Dishonest act or omission, relating to the production or supply of food, which is
intended for personal gain or to cause loss to another party. (Pr. Tony Hines
Leatherhead Food Research Association)

– A collective term used to encompass the deliberate and intentional substitution,

addition, tampering, or misrepresentation of food, food ingredients, or food packaging;
or false or misleading statements made about a product, for economic gain. (Dr. John
Spink Director and Assistant Professor, Food Fraud Initiative, Michigan State University)

– FDA-Economically Motivated Adulteration (EMA) Historical Food Fraud that leads to a

food safety issue.

Presented for IFSQN- July 31, 2020

Types of Food Fraud

Presented for IFSQN- July 31, 2020

Why Is Food Fraud an Issue?
• Affects everyone
• Historical
• Global supply chain and increasing
food prices provides greater
opportunity, incentive, and rewards
• Spectrum from simply misleading
to very sophisticated
• Fraudsters are difficult to detect –
think watches and handbags!

Presented for IFSQN- July 31, 2020

Why Is Food Fraud an Issue?
• International problem - border control issues
• Local authorities have limited resources for surveillance, detection, and
investigation
• Difficult to predict the next issue, category, and magnitude

Presented for IFSQN- July 31, 2020

 Food Fraud Examples

Presented for IFSQN- July 31, 2020

Food Fraud Examples

Wine Fraudster Rudy Kurniawan

Gets 10 Years in Jail
Wine fraudster Rudy Kurniawan, 37, has been
sentenced to 10 years in jail and ordered to pay
$20m (£11.8m) for his role in selling millions of
dollars worth of fake wine.
He has also been ordered to pay $28.4m in
restitution to victims, who include billionaire
William Koch.
Mr Kurniawan is the first person ever to go to jail
for selling fake wine in the US.

Presented for IFSQN- July 31, 2020

Food Fraud Examples
• The New Zealand Herald reports that a former egg farmer from
Northland has been sentenced to 12 months home detention for
passing off eggs from caged hens as 'free-range'. John Garnett claimed
that the practice was 'widespread', but this was disputed by the egg
industry. Between April 2010 and November 2011, Mr. Garnett's farm
falsely packaged and sold more than 206,000 dozen eggs, which
claimed to be free-range or barn-laid.

Presented for IFSQN- July 31, 2020

Food Fraud Examples
• Melamine is a carcinogenic organic base chemical rich in nitrogen and
most commonly found in white crystal form used in plastics, adhesives,
dishware, and whiteboards
• Affects the kidneys, creates kidney stones and
can cause death in humans and animals
• Found in pet foods in 2007
• In milk in 2008, killed six babies and
made 300,000 ill

Presented for IFSQN- July 31, 2020

 Regulatory Requirements

Presented for IFSQN- July 31, 2020

United States
• Food Drug and Cosmetics Act of 1938
– Included sections on “Adulterated Foods” and “Misbranded Foods”
– The food would be misbranded if it represented itself as a standardized
food unless it conformed to the following The law provided for three
kinds of food standards: standards (definitions) of identity, 2) standards of
quality, and 3) standards regulating the fill of container.
• Food Safety Modernization Act of 2011
– 21 CFR 117 Preventive Controls for Human Food
– 21 CFR 507 Preventive Controls for Animal Food
• Economically Motivated Adulteration within the hazard analysis

Presented for IFSQN- July 31, 2020

European Requirements
• REGULATION (EU) 2017/625
– Clause 22 Markets of agricultural products
• Wine, Olive Oil, Honey
– Clause 32
• Competent authorities should perform official controls
• on all the sectors and in relation to all operators, governed by Union agri-food chain legislation.
• including the possible violations of the Union agri-food chain legislation perpetrated through
fraudulent or deceptive practices
– Clause 73
• expert assistance of, European Union reference centers for the authenticity and integrity of the agri-
food chain and for animal welfare.
– Clause 74
• should enable competent authorities to share information, detect, investigate and take effective and
proportionate action to pursue cross-border violations of Union agri-food chain legislation also in
cases where potential fraudulent or deceptive practices have or could have a cross-border dimension

Presented for IFSQN- July 31, 2020

United Kingdom
• Food Safety Act 1990
– Consumer Protection
• Selling food not of the nature or substance or quality demanded
• Falsely describing or presenting food
• Fraud Act 2006
– Fraud by false representation
– Fraud by failing to disclose information
– Making or supplying articles for use in frauds

Presented for IFSQN- July 31, 2020

 GFSI Requirements

Presented for IFSQN- July 31, 2020

Global Food Safety Initiative (GFSI)
Standards recognized by GFSI
• Food Safety System Certification (FSSC 22000)
• Safe Quality Food (SQF)
• British Retail Consortium (BRC)
• International Featured Standard (IFS)
• Canada GAP
• Global Red Meat Standard (GRMS)
• Primus GFS Standard

Presented for IFSQN- July 31, 2020

Poll Question
Under all major GFSI standards, what are two requirements for food
fraud control?

A. Food fraud vulnerability assessment

B. Independent laboratory ingredient testing program
C. Food fraud mitigation plan
D. Delegating risky supplier audits to a reputable 3rd party auditing body

Presented for IFSQN- July 31, 2020

Poll Answer
Under all major GFSI standards, what are two requirements for food
fraud control?

A. Food fraud vulnerability assessment

B. Independent laboratory ingredient testing program
C. Food fraud mitigation plan
D. Delegating risky supplier audits to a reputable 3rd party auditing body

Presented for IFSQN- July 31, 2020

Global Food Safety Initiative (GFSI)
GFSI Benchmarking Requirements Version 7.2

Presented for IFSQN- July 31, 2020

FSSC 22000
Food Fraud Requirements

Presented for IFSQN- July 31, 2020

BRCGS
Food Fraud Requirements, continued

Presented for IFSQN- July 31, 2020

BRCGS
Food Fraud Requirements, continued

Presented for IFSQN- July 31, 2020

AIB International Consolidated Standards
Food Fraud / EMA Assessment Requirement

Presented for IFSQN- July 31, 2020

 Assessments and Controls

Presented for IFSQN- July 31, 2020

Food Fraud Vulnerability Assessment

Presented for IFSQN- July 31, 2020

Mitigation Strategies/Preventive Controls

BRC Training Guide for Vulnerability Assessment vr.1 October 2017

Presented for IFSQN- July 31, 2020

 Similarities and Differences

Presented for IFSQN- July 31, 2020

Similarities
• Laws, regulations, and or standards in place
• Requirements to assess the risk
• Establish programs and or controls to reduce the risk

Presented for IFSQN- July 31, 2020

Differences
• How to:
– Prevent Food Fraud
– Assess Food Fraud risks
– Control Food Fraud risks
• What types of Food Fraud to consider?

Presented for IFSQN- July 31, 2020

Summary
• Defined Food Fraud
• Identified Types of Food Fraud
• Provided Global Examples of Food Fraud
• Reviewed U.S. Regulatory Requirements
• Examined European Union and United Kingdom Regulatory
Requirements
• Outlined GFSI and Other Third-Party Audit Requirements
– Similarities
– Differences

Presented for IFSQN- July 31, 2020

Questions

Presented for IFSQN- July 31, 2020