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Controversies of Nestlé

A history of ethical and legal controversies surrounding Nestlé.

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Nestlé, the world's largest food company, has been the subject of numerous controversies since the 1970s. Criticism has focused on its business practices, including allegations of forced labor, child labor, and misleading marketing of breast milk substitutes. The company has also faced scrutiny over food safety incidents, water rights issues, and other ethical concerns.

Quick Facts

Boycott relaunched
1989

Facts from the source article.

Baby formula marketing (1970s–present)

Concerns about Nestlé's marketing of breast milk substitutes first emerged in the 1970s, particularly in developing countries. Critics alleged that Nestlé discouraged breastfeeding by suggesting formula was healthier, using tactics such as distributing free samples in maternity units and dressing salespeople as nurses. A boycott began in the United States in 1977 and spread to Europe; it was suspended in 1984 after Nestlé agreed to follow a World Health Organization marketing code, but was relaunched in 1989.

In the 1990s, a former Nestlé salesman in Pakistan, Syed Aamir Raza Hussain, released a report alleging the company encouraged doctors to promote infant formula over breastfeeding; Nestlé denied the claims. In 2011, nineteen Laos-based NGOs launched a boycott, criticizing a failure to translate labeling into local languages and alleging incentives to health workers. Nestlé commissioned an audit by Bureau Veritas, which found that WHO Code requirements were embedded but violated by promotional materials in 4% of retail outlets visited.

Forced labor, modern slavery and child labor

Multiple reports have documented child labor, slavery, and child trafficking on West African cocoa plantations supplying Nestlé and other chocolate companies. A 2010 documentary noted that children working there are typically 12 to 15 years old. In 2005, the International Labor Rights Fund filed a lawsuit under the Alien Tort Claims Act on behalf of three Malian children, alleging they were trafficked to Ivory Coast and forced into slavery with beatings.

The suit was initially dismissed in 2010, but the Ninth Circuit reversed; the U.S. Supreme Court declined to hear Nestlé's appeal in 2016. A 2016 study found about 2.1 million children still harvesting cocoa in West Africa, with farmers in Ghana earning 84¢ per day and those in Ivory Coast 50¢, below the World Bank's extreme poverty line. The former secretary general of the Alliance of Cocoa Producing Countries estimated that only 10% of needed efforts were being made.

In 2019, Nestlé stated it could not guarantee its chocolate was free from child slave labor, as it could trace only 49% of purchases to the farm level. A 2001 commitment to eradicate such practices by 2005 had not been met, nor by revised deadlines of 2008 and 2010.

Food safety

In 2008, the Hong Kong government found melamine in a Chinese-made Nestlé milk product; six infants died from kidney damage and 860 were hospitalized. Nestlé affirmed its products were safe, but Taiwan's health ministry later found low-level melamine traces in six Nestlé milk powders from China. By 2013, Nestlé had implemented a 'factory and farmers' model to prevent contamination, with computerized testing at collection centers and farmer training.

In 2014, the Nestlé Food Safety Institute opened in Beijing to support food-safety policies. In 2015, weevils and fungus were found in Cerelac cereal. In 2024, an investigation by Public Eye and IBFAN revealed that Nestlé's baby cereals and formulas sold in lower- and middle-income countries contained significantly higher added sugar than those sold in Europe and other developed nations.

Water

At the 2000 World Water Forum, Nestlé and other corporations persuaded the World Water Council to change its statement from water as a 'right' to a 'need'. At the 2005 World Water Forum, a study by Nils Rosemann criticized Nestlé's impact in Pakistan; Nestlé called the study distorted and denied responsibility.

In 2018, the Supreme Court of Pakistan addressed Nestlé based on that study, and Pakistan's Audit Agency stated the company made 'unjustified' profit from bottled water. In 2008, environmental groups filed a complaint with Advertising Standards of Canada over Nestlé ads claiming bottles are recycled and that bottled water is eco-friendly; Nestlé's own 2008 Corporate Citizenship Report stated many bottles end up in solid waste and most are not recycled. Nestlé defended the ads as truthful.

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Sources

Compiled from Wikipedia and the sources listed below. Text from Wikipedia is available under CC BY-SA 4.0; this entry is adapted from it.

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