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  • Okay, so you think this is olive oil, right?

  • Wrong.

  • Well, maybe some of it is, but this is actually a classic example of food fraud.

  • Extra virgin olive oils are being switched out with cheap ones.

  • And fraudulent to sell something labeled as something else.

  • Why is this fish being mislabeled?

  • Their Parmesan cheese products do not contain any Parmesan cheese.

  • As there was no one brand that stood out as completely safe.

  • Wow, so we can't eat anything?

  • I guarantee you any time a product can be passed off as something more expensive, it will be.

  • It's that simple.

  • Counterfeits, dilutions, substitution, and mislabeling.

  • Food fraud not only harms consumers' wallets, it puts their health and safety at risk.

  • We might not know the overall impact of food fraud.

  • Because so much of what fraudsters do is hidden from us and has been for centuries.

  • Some estimates say food fraud affects at least 1% of the global food industry, at a cost as high as $40 billion a year, according to the Food and Drug Administration.

  • Grocery manufacturers of America estimated that 10% of the commercially available food in the United States is adulterated.

  • That's a one in 10.

  • It means if you're not on that eight item or less checkout line, you've got something in your cart when you leave the supermarket that's probably bogus.

  • Here's how, and why, fake food sits secretly in our kitchen cabinets.

  • According to the FDA, food fraud is considered Economically Motivated Adulteration, or EMA.

  • It's a monetary impact to the consumer and to the food manufacturers, but it's also a potential public safety, public health impact.

  • It robs us of nutrients and can kill people and has done.

  • Larry Olmstead researched food fraud for years and published his book, Real Food, Fake Food, in 2016.

  • As I worked on this book, my definition of fake food became any time what you buy is not what you think you're buying.

  • Doesn't really matter whether it's legal or illegal.

  • It's where you're being tricked.

  • You're buying something that's not what you think it is.

  • The worst offenders can include seafood, meat, dairy, honey, alcohol, spices.

  • The fraud happens more with more expensive foods.

  • Totally makes sense, right?

  • There's a higher margin.

  • Take your extra virgin olive oil as an example.

  • Fraud usually occurs here when a cheaper oil is added to the more expensive oil, and the label still reads 100% extra virgin olive oil.

  • That's food fraud.

  • Olive oil has been adulterated for thousands of years because it is of high value and it is sought out.

  • They might flavor it with beta carotene and maybe color it with a little chlorophyll to make it a little more green.

  • And so then you've got a lower quality, cheaper oil.

  • So both of these olive oils I got at the grocery store, and both of them are the store brand.

  • But one cost way more than the other.

  • This one had a label of 100% Mediterranean blend of extra virgin olive oil.

  • So the olives were sourced from a bunch of different European countries, and it said it was packed in Italy.

  • And there was no expiration date.

  • And when I purchased this one, this one was a 100% California extra virgin olive oil.

  • First pressed, cold pressed, unfiltered, no artificial colors, preservatives, or flavors.

  • And this one had an expiration date.

  • It said that these olives were harvested in October, November 2022, and that it would be good on your shelf until August 2024.

  • And it was much more expensive.

  • Roughly twice as much as this olive oil.

  • And this one had way more information about where this olive oil came from.

  • Now let's look at the spice market as another one that's vulnerable to fraud.

  • Think of an expensive spice like saffron.

  • This tiny amount cost me $20 at the store.

  • Saffron can be bulked up with some other material like plant stems and sold as the same, according to the FDA.

  • Popular spices like basil and chili powder from a range of different brands.

  • Anything that's kind of colored orange, brown and ground up can be passed off as turmeric.

  • It's the ultimate bait and switch.

  • And then there's fish.

  • The FDA says seafood fraud can occur when a less expensive species of fish is substituted for a more expensive species.

  • After all, it's kind of hard to know what fish you're buying, right?

  • If you're an experienced chef or fishmonger, you can look at like a red snapper fillet and tell whether it's red snapper.

  • But 99% of consumers can't.

  • You know, most of the fish we eat is white fish.

  • Every fillet looks pretty much the same, which is why there's so much substitution.

  • The FDA is mandated by law to inspect 2% of the imported seafood, which is, I think, a very, very low bar.

  • In fact, the U.S. imports as much as 85% of its fish.

  • Federal Fisheries Enforcement is serious business.

  • Agents from NOAA and U.S.

  • Customs tear open a container filled with frozen fish from Thailand.

  • They're looking for fraud.

  • First, it's important to understand the matrix that food fraud lives in.

  • There's intentional and unintentional types of food risk.

  • Unintentional risks include food safety and quality, like accidental foodborne illnesses.

  • CDC estimates about 50 million people a year contract a foodborne illness.

  • Only 20%, one in five of those, can be identified.

  • So there's, you know, 40 million people a year getting sick from something they ate that we don't know what it is.

  • And a good guess would be that fraud has something to do with that.

  • Then there's intentional.

  • That's where food fraud is alongside food defense.

  • The difference is fraud is motivated by economic gain and defense is motivated by harm.

  • If you have a ton of coffee and you can turn that into 1.2 tons by adding some cheap filler to it, you've just increased your profits by 20%.

  • And a lot of these products pass through a lot of hands.

  • They go from small growers to big trucks to tankers to boats to processing plants.

  • It's not necessarily like this big company that's selling you coffee that's ripping you off.

  • It can happen in a lot of ways along the way.

  • Even the FDA says it can't estimate how often this fraud happens or its economic impact.

  • Over the last 10 years, the most common fraud committed is lying about an animal's origin and dilution or substitution.

  • Both ranking at 16% of incidents recorded.

  • Dilution and substitution are exactly what they sound like.

  • Perhaps somewhere along the supply chain, the real expensive process of refining something like fresh olives is ignored.

  • Maybe a little canola oil is added instead.

  • Then there's the removal of value.

  • When an ingredient or part of a food is intentionally left out, taken out, or substituted altogether.

  • And that substitute can be a non-food substance.

  • That's the 14% of the recorded food fraud incidents using non-food substances.

  • The pandemic has given us a chance to focus on supply chains and forced us to.

  • For example, during the pandemic, labeling fraud really spiked in 2021 to 21% of the types of fraud that were committed and recorded.

  • You know, if we knew all about it, why hasn't it been solved?

  • The key was we weren't focusing on prevention.

  • Food fraud prevention, if we do it right, is boring.

  • We're the fire marshal checking exits and smoke alarms, not catching the bad guys.

  • The U.S. has laws in place to ensure food safety.

  • That's part of what the FDA does today.

  • Basically, all food fraud, all product fraud is illegal under one law or another somehow.

  • Before the FDA existed, manufacturers could add basically whatever they wanted into the food.

  • Think of Upton Sinclair's The Jungle.

  • That book was published in 1906.

  • That same year, food safety regulation began with the Meat Inspection Act and the Pure Food and Drugs Act, which outlawed adulterated and misbranded food items.

  • To protect consumers.

  • This ultimately led to the creation of the FDA.

  • The Food and Drug Administration.

  • Since then, laws have hit the books to further food safety protocols, like the Food Safety Modernization Act signed into law in 2011.

  • And then horsemeat hit.

  • The fraud was on a grand scale.

  • Horsemeat was blended into beef in the U.K., across Europe.

  • And sold to unsuspecting supermarkets for a period of eight months in 2012.

  • The scandal was exposed.

  • And that was a great wake-up call.

  • Some companies purposely mislead on labels.

  • Prosecuting the fraudsters committing the crime can be tricky.

  • After all, they're purposely trying to avoid that detection.

  • But criminals are caught.

  • Like in 2016.

  • Product labeled Market Pantry 100% Parmesan contained cheaper Swiss and cheddar cheese and an organic filler called cellulose, which can be derived from wood pulp.

  • Castle Cheese was caught adding wood pulp and cheddar to its grated Parmesan that they sold as 100% Parmesan cheese.

  • The FDA does allow fillers like cellulose in cheese, but it can only make up 4% of the total ingredients.

  • The president of the company got a $5,000 fine, 200 hours of community service and three years of probation.

  • For its part, the Food and Drug Administration says its job is to make sure food doesn't hurt you, not to police the labels.

  • Fraud is tough for the consumer in terms of food because it's difficult.

  • They don't have a lab in their kitchen.

  • The Food Fraud Prevention Think Tank has a five-question survey consumers can use when shopping for food.

  • One, what type of product is it?

  • Be aware of product that you put on you, in you, or plug in the wall.

  • Two, quality.

  • Can you recognize the difference between the products?

  • If you can't easily tell the difference, that makes you more vulnerable to fraud.

  • If I drink scotch, I couldn't tell if it's a difference between a $50 bottle and a $5,000 bottle.

  • So I know I could be deceived at that point.

  • Three, supplier.

  • Do you know the retailer or the supplier?

  • And do you trust them?

  • So when you turn that box of cereal or bottle of juice over and read the back, there's a lot of information there that's required by law that's helpful to the consumer.

  • And then question four, are you buying this item online?

  • The supply chain can be shrouded in more mystery when shopping online.

  • So how did you find out about this website?

  • Is it reputable?

  • It depends on how you find that supplier.

  • And finally, five, complain.

  • Okay, it's not a question, but the Food Fraud Prevention Think Tank says if the retailer is legit, they will want to know.

  • I think manufacturers can be the victims as well.

  • The FDA also relies on consumers' reports.

  • For some recent decades, fraudsters have gotten more sophisticated in the techniques they use to fake the food products.

  • And that means that our detection methods and our test methods and standards have to be better at detecting fraud.

  • That's why the U.S.

  • Pharmacopoeia Convention provides a framework for We have food fraud mitigation guidance.

  • So it is a supply chain risk management tool to really take a look at which ones are the more risky products suspected to be adulterated.

  • Sometimes it feels like this is not that big of a deal.

  • But the more fraudsters are able to achieve, the more we end up paying in the end as consumers.

  • These cases rarely result in criminal penalties.

  • If you want to be like a drug dealer and import heroin, and you get arrested on a large scale, you're going to go to jail.

  • But if you can make $80 million importing adulterated honey, and then you're going to get a slap on the wrist and some fines, why wouldn't you do food instead of drugs if there's no basically criminal downside to it?

  • So as long as we don't take it seriously, why should the perpetrators take it seriously?

  • What we want is the food industry just to be focused on making food and not have to worry about looking over our shoulder, checking different suppliers.

  • And that's going to impact more food being produced, better food, safer food, less expensive food.

  • There's plenty of things for us to worry about in the world today.

  • And food fraud should not be one of those.

Okay, so you think this is olive oil, right?

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