Nestle And Others Get An FDA Warning (NSRGY, DMND, HAIN)
The FDA has issued a warning to Nestle (OTC:NSRGY) and a dozen other foodmakers over their misleading nutritional claims. In a publicly released letter, the FDA has insinuated the companies are exaggerating the nutritional value of their foods.
The U.S. Food and Drug Administration is currently working towards new guidelines for package labeling. The move is likely to make it easier for consumers to comprehend the nutritional value of the products.
FDA has held Gerber (NSRGY) responsible for claiming its baby foods to be “Healthy as Fresh” and “Excellent Source…of Vitamin A”. In its open letter, FDA wrote, “These regulations do not allow the claim for products specifically intended for children under two years of age." Similarly, Diamond Foods Inc. (NASDAQ: DMND) and Spectrum Products Inc. (NASDAQ: HAIN) have also been chastised for misleading nutritional claims.
