Oatly, Inc. has chosen to discontinue its “no added sugars” advertising claims after the Campbell Soup Company brought a challenge before the National Advertising Division (NAD). Campbell argued that various claims found on Oatly oatmilk products, including “0 g added sugars” and “no added sugars,” were misleading because the products contain maltose, a sugar by-product of the hydrolysis process used to manufacture oatmilk. The company agreed to discontinue the “no added sugar” claim, and the NAD’s decision focused on the “0 g added sugars” claim. The case highlights key food industry advertising issues, including whether and when the NAD will defer to FDA regulations regarding claims based on mandatory labeling elements, as well as the complexities of calculating added sugars.
