Legal factors in gloria S.A. milk.

These are the legal problems that gloria S.A. had.

Infringement of labeling regulations for packaged products.

Indecopi established that Gloria S.A. infringed the duty, which corresponded to it as a supplier,
to respect the labeling norms in its product "Pura Vida". Thus, it was established that it did not
comply with the actual denomination of the dairy products it sells, appealing to generic terms
not authorized by the international technical standards required by the national regulation.

This obligation is currently foreseen in article 10 of the Consumer Code, which establishes that
packaged products offered to the consumer must have in a visible and legible manner the
information established in the corresponding sectorial labeling regulation; and that Indecopi is
in charge of overseeing compliance with it.

This infringement involves a staple product.

Indecopi pointed out that dairy products -and Gloria's products in particular- are positioned in
the market and in the consumers' minds as an essential food for the nutrition of people,
especially minors. Therefore, substitutes or competition through varieties of the same product
become more relevant.

An undetermined number of consumers are affected.

Likewise, it was established that an aggravating factor is that those who could acquire such
food would do so in the belief that it corresponds to ordinary fresh or evaporated milk, without
realizing that these are products whose components have been modified.

The seriousness of the infringement

On the other hand, Indecopi pointed out that the infringement committed by Gloria is serious
due to the effects generated in the consumers' choice, even when it does not involve an
affectation to their health or safety. Thus, this circumstance could justify the sanctioning of
such conduct with the maximum that such level of seriousness allows.

The use of the term "milk" is restricted, according to the Codex Alimentarius

Although the Codex Alimentarius recognizes that the legislation of each country may allow the
use of the term "milk" in the case of modifications, Indecopi stated that in our country such
authorization does not exist, and it is necessary to specify that even in such cases (where
modifications to the ordinary composition of milk are allowed), the Codex stipulates that the
modification must be reported. This would only be achieved by describing such modification
for the identification of the product, but this does not occur in the case of the products
marketed by Gloria, said the competition agency.