Dive Brief:
- Midamar Corp., which produces foods for observant Muslims, is pleading guilty to a conspiracy charge after exporting misbranded halal beef products to Malaysia, Indonesia, and elsewhere.
- "The count to which Midamar is to plead guilty alleges the company made 'fraudulent, deceptive, and misleading claims' about the source and nature of beef products, the way the cattle were slaughtered and the level of adherence to halal practices that were advertised," according to the Associated Press. A plea agreement necessitates the company "forfeit $600,000 in proceeds derived from the offenses," also according to the Associated Press.
- According to testimony, some Midamar products were manufactured at a Minnesota slaughterhouse that wasn't OK'd by Malaysia or Indonesia. Midamar's founder, Bill Aossey Jr., told employees to remove the slaughterhouse's establishment number from the products' packaging and falsely label them instead to say that the meat was from a certified Nebraska slaughterhouse.
Dive Insight:
Many mislabeling cases have focused on claims like being all-natural or being free from certain ingredients, such as allergens or trans fat. But mislabeling allegations can stem from a number of sources, which is why demonstrating transparency is key, or risk being the target of a future lawsuit.