Hefty fines for ‘no palm oil’ labels


PETALING JAYA: Those selling products with labels that says “no palm oil” have been ordered to take down the items from the shelves in a crackdown on discriminatory food labels.

Several premises in Selangor were found selling these products on Jan 26 by the Multi-Agency Enforcement Force (MAEF) established by the Plantation and Commodities Ministry.

The premises inspected were found to be selling local and imported products that prominently displayed labels saying “no palm oil”.

On some other products, it was found that importing companies had affixed stickers to obscure the discriminatory labels.

During the inspection, the managers of the premises were briefed on the prohibition of discriminatory labels and told to clear the shelves. Warnings were issued to the premises to stop selling these products.

A follow-up inspection will be conducted to ensure that the issue is not repeated.

Any form of labelling displaying messages such as “no palm oil” or “palm oil free” is illegal and can be punished with a fine of RM250,000 or imprisonment up to five years under Section 69 of the Trade Description Act 2011, which came into effect in March 2022.

These labels are part of the European Union’s renewable energy directive to reduce the use of palm oil over deforestation concerns since 2018.

Another major palm oil exporter, Indonesia, has joined Malaysia in banning the use of these labels.

“These labels create a negative perception about palm oil among consumers. It undermines the good reputation of palm oil produced by the country, and it violates principles of fair and transparent trade,” said the ministry in a statement yesterday.

It said the ministry would take action against any party, whether importers, distributors, sellers or other related parties committing such offences.

The Multi-Agency Enforcement Force (MAEF) was established to enforce the law while raising awareness about discriminatory labelling against palm oil.

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