Ultra-processed foods – health and liability risks

Consumption of ultra-processed foods (UPFs) is rising globally. Research shows associations between high UPF intake and elevated health risks, including obesity, type-2 diabetes, depression, cardiovascular disease and cancer, not to mention mortality. This new evidence, combined with increased public awareness, growing regulatory scrutiny and rising litigiousness, could lead to a surge in lawsuits around inadequate warning and deceptive advertisement/labelling.

Since the 1980s, there have been multiple theories on what drives obesity. Of late, focus has moved to a novel culprit: UPFs. These are defined as foods that have been extensively altered using industrial techniques, often containing chemically-modified substances and artificial additives. The foods appeal to the senses of customers but deliver little in the way of nutrition. They are characterised by texture alterations, which reduce satiation mechanisms in the human body and lead to overconsumption. UPF classification includes a broad range of foods, which multiplies potential liability exposures. Examples include packaged snacks, sugary beverages and ready-to-eat or ready-to-cook meals, but also options generally considered to be healthy like low-fat processed foods.

Casualty: Emerging evidence of negative health outcomes of UPF consumption, combined with increased public awareness and an increasingly litigious environment, could lead to a wave of lawsuits around inadequate warning and deceptive advertisement and labelling. Food manufacturers and distributors could be held liable for negligence, failure to warn, misrepresentation or fraudulent concealment, whilst regulatory and public health authorities might be sued for failing to take action. Contamination incidents are currently the leading cause of insurance claims associated with UPFs. Such incidents continue to rise steadily, and with them the risk of amplifying product liability and recall claims. ¹

In the US where litigation risk is high but food regulation relatively lax compared to other developed countries, we expect continued tightening of restrictions on artificial additives. Earlier this year, a ban on eight artificial food dyes was introduced in the US, citing concerns over impacts on child health. ² Future regulatory changes and government interventions are possible, which could to create growing challenges for food companies and distributors. In the US, amongst other complications for the food sector, regulation is not uniform across the states. For instance, California and New York have recently unilaterally banned five additives commonly found in baked goods, sweets and soft drinks, but these have yet to be banned at the federal level. ³  The five additives have been associated with cancer, neurological and behavioural problems, and damage to DNA, amongst others. In Europe, their use in food products has already been almost entirely banned. ⁴

There are also concerns about the potentially addictive nature of UPFs, which are designed to be “hyperpalatable” and thereby boost desire to eat and overconsume. ⁵ Potential litigation claiming intentional addictiveness of UPFs could echo the class action lawsuits rivaling those of big tobacco or the opioid crises. In the US, first class-action involving UPF was filed in December 2024, alleging that major food producers knowingly marketed UPFs that can be addictive to children. The court case is ongoing at the time of writing.

L&H: Though causality is difficult to establish, observational studies have found associations between high consumption of UPFs and poor metabolic health outcomes, adding to the overall mortality and morbidity burden of non-communicable diseases. ⁶ This has been linked to the illnesses of the cardiovascular, gastrointestinal and respiratory systems, in addition to increased morbidity through cancer and poor mental health. ⁷ New research suggests that the sugars and other additives in UPFs can alter the intestinal microbiome, thereby affecting brain function through complex “gut-brain axis” mechanisms. ⁸ There are some indications that consumption of synthetic food colours in children is associated with poor attention. Such implications indicate that increased consumption of UPFs would lead to a growing number of poor health outcomes over time, and thereby higher medical insurance claims.

Source: Lane, M. et al. Ultra-processed food exposure and adverse health outcomes: umbrella review of epidemiological meta-analyses, BMJ, vol 384, 28 February 2024, and Swiss Re Institute.