Leche Gloria and Nestlé Peru sanctioned for misleading advertising

By Espinosa Bellido Abogados

Peru’s National Institute for the Defense of Free Competition and the Protection of Intellectual Property (Indecopi) sanctioned dairy companies Leche Gloria and Nestlé Peru for misleading advertising of their products, with a total penalty of nearly USD 1,3 million.

Indecopi’s court of second instance upheld a previous decision stating that both companies infringed article 32 of the Code for Defense and Protection of Consumers for using wrong denominations in the labeling of their dairy products Pura Vida and Bonlé (Leche Gloria) and Reina del Campo (Nestlé Perú).

According to Indecopi, the companies announced their dairy products in the market as if they were made of cow's milk, without stating the true nature in the labeling. Both in the advertising and in the packaging of the products, they used images of cows, images of glasses with white liquids and repeatedly mentioned the term “milk”.

Both Leche Gloria and Nestlé Peru have already announced they will appeal the decision in a civil court.