Peru: Gloria Denounced for Fraud and Health Crimes

Peru: Gloria Denounced for Fraud and Health Crimes

Mike Dreckschmidt

The business conglomerate Gloria has been officially investigated and denounced by Peruvian authorities and faces further extensions of criminal charges. Also, a little background…

In the second week of June, the Peru-based international business conglomerate Gloria was denounced officially before prosecutors in Lima, according to El Comercio.

Their transgressions: fraud and crimes against public health.

The corporation came under public heat when it was revealed that their milk product Pura Vida (marketed as being pure milk) was not really “pure” at all, but rather heavily “modified milk”. It tested as only 60% real milk. Considering the product name literally means “pure life” and the adorable cow photograph on the container, a case was made against the conglomerate Gloria for false marketing and fraud.

As public indignation began to spiral out of control, Gloria began to change their marketing strategy to avoid the same problem in other countries such as Panama.

Why such indignation? For one, many Peruvians take their food seriously and prefer natural foods over their processed counterparts. Secondly, the fact that Gloria is part of the monopoly (3 companies sell more than 90% of all lactose products) in Peru makes the false marketing of a “pure” milk product come off as very abusive and insulting. Thirdly, although Gloria is a Peruvian-based company, the milk that they sell abroad is of a higher quality than what they sell to Peruvians (Bolivia’s Pura Vida is 80% milk).

This is a very brief summary of a high profile case in Peru that has gone on for some time. However, it points to a much larger problem that the Peruvian authorities must begin to tackle. How many other companies are getting away with blatant false advertising in Peru? Is the line between what is false advertising and consumer responsibility clear enough?

Let us know what you think here at Living in Peru.

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