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Iceland chairman defies UK laws on infant formula sales

Tag：Industries Legislation Retail 2023-08-28 14:37

UK supermarket Iceland Foods has announced plans to illegally accept food bank vouchers, loyalty points and gift cards for purchases of infant formula.

Currently, UK laws prohibit retailers from promoting discounts and savings on infant formula. This includes reducing prices to clear stock that is nearing the end of shelf life and accepting purchases made using loyalty points, store gift cards and food bank vouchers.

Iceland’s executive chairman Richard Walker announced the decision on the television show Good Morning Britain yesterday (23 August), speaking out in support of ‘Formula for Change’, a petition led by Feed and Metro UK that calls for immediate changes to the law.

The latest news follows a public announcement from Iceland last week, informing consumers that it would be cutting the price of formula milk at Iceland and The Food Warehouse stores by over 20%, in response to rising prices of formula milk placing “unbearable pressure” on parents during the cost of living crisis.

The decisions to defy regulations could see the supermarket facing an unlimited fine, Walker told Good Morning Britain, adding that the supermarket had already received complaints from local authorities including the Department of Health in response to its price reduction announcement.

Walker also spoke out encouraging the government to review the Healthy Start voucher scheme, which provides support for pregnant people and eligible families to buy healthy food and milk products. The vouchers, currently offering £8.50 per week for babies up to one year old, have not been increased in value since April 2021 – something Walker described as “a joke,” adding that they currently do not cover the cost of even the cheapest available formula after recent price increases.

While the government legislation was introduced to encourage mothers to choose to breastfeed, Walker argued that the regulations affect many groups for whom breastfeeding is not an option such as gay couples and adoptive parents among others, emphasising the importance of allowing people the right to choose and enabling fair access to affordable formula solutions.

“The benefits of breast feeding versus using infant formula aren’t up for debate: this is about supporting the choices of UK parents as they navigate the cost-of-living crisis,” Walker said in a statement.

“The government needs to show it is doing all it can to help people in the UK and support retailers like us so that we can do our part without reprisals.”

The news from Iceland comes during the same week that UK retailer Boots had removed automated adverts promoting four brands of infant formula for babies up to six months old, after the Advertising Standards Authority said the company had broken UK advertising rules. In the UK, it is against the law to advertise infant formula for babies up to six months old because it might discourage breastfeeding.

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