309 000 fine for the 'cowgirl in the left corner' is not butter but lard, palm oil and soybean oil (Review)

The Bulgarian Competition Protection Commission (KZK) has imposed one of its largest fines ever for misleading consumers, totaling 309,689 euros on two local companies—“Klas Food” and “Alfa SD.” The fine was levied after investigations revealed that these firms were selling a product labeled as "Deutsche Markenbutter," which is marketed as cow's butter, but in reality contains over 95% non-dairy fats. This includes palm oil, coconut and palm kernel oils, soybean oil, sunflower oil, and even pork fat. The findings came from laboratory analyses conducted during the investigation, which confirmed that the product does not meet the standards required for genuine dairy-based butter.

According to KZK’s decision, the case represents a particularly severe violation of consumer protection laws, as it puts the health of buyers at risk. Non-dairy fats are not prohibited in Bulgaria, but they must be clearly labeled and sold separately from dairy products. The commission emphasized that the use of the name "Deutsche Markenbutter"—a well-known German standard for high-quality cow's butter—was especially misleading. This label is traditionally associated with strict production standards and a specific composition derived solely from milk, making the misrepresentation all the more deceptive.

The investigation began when the Bulgarian company “Rostar BG” OOED filed a complaint. They had been importing the original German product, which is advertised under the slogan “Discover the cow’s corner in the left angle,” and noticed another product with the same name being sold in the market. This product was marked as imported by “Klas Food,” who then sent samples to an accredited laboratory. The results showed that the product contained no dairy components, despite the label stating it was made from pasteurized cream from cow's milk. When questioned, the German manufacturer confirmed that such a product with this label had not been produced since 2018.

During the KZK investigation, “Klas Food” attempted to justify their actions by claiming they were merely distributors, purchasing the product from another firm and applying labels in Bulgarian. However, according to the law, distributors are also responsible for conducting laboratory tests on the products they sell. As a result, both companies were fined, although the percentage of their net income affected by the penalty varied—1.5% for “Klas Food” and 4.5% for “Alfa SD.”

The KZK ruling highlights the importance of transparency in labeling and the need for accurate information about product contents. It also underscores the potential risks posed to consumers when food products are misrepresented, especially when they involve ingredients that could trigger allergies or dietary restrictions. The decision serves as a warning to other businesses about the consequences of misleading marketing practices and emphasizes the role of regulatory bodies in ensuring fair competition and protecting public health.

The incident has sparked discussions within the industry regarding the pressures faced by manufacturers and distributors to maintain certain brand images while adhering to legal requirements. Some have suggested that there might be external influences from retail chains pushing for cost-effective alternatives, but the KZK has not yet commented on such claims. Regardless, the case sets a precedent for stricter enforcement of labeling regulations and increased scrutiny of product authenticity in the food sector.

Moving forward, the affected companies may seek to appeal the decision before the Supreme Administrative Court. Meanwhile, the broader implications of this case extend beyond just the financial penalties. It raises questions about how similar products are currently marketed and whether other companies might be engaging in comparable practices without proper oversight. Consumer advocacy groups have called for greater awareness among shoppers about reading labels carefully and understanding the differences between dairy and non-dairy fats.

As the situation develops, further investigations into related cases could emerge, potentially leading to additional sanctions against companies found guilty of similar violations. In the meantime, the KZK continues to monitor the market closely, aiming to ensure that all products meet the necessary standards and that consumers are adequately protected from misleading advertising and false representations.