Case Studies for Wellness Businesses (UK – Asia Context)

Case 1: Mislabelled Food Supplements Imported from China

Background:

A UK wellness company imported herbal supplements from a supplier in China. The labels claimed the products “boost immunity” and “prevent colds”. On inspection, Trading Standards found that:

• The product contained undeclared allergens (soy).
• The health claims were not authorised under UK food law.
• The responsible person had not notified the Food Standards Agency.

Legal Issues:

• Breach of UK Food Information Regulations (failure to declare allergens).
• Breach of CAP Code (unauthorised health claims).
• Non-compliance with food supplement notification requirements.

Consequences:

• Products were seized at the border.
• ASA banned online ads.
• The company faced a £20,000 fine and reputational damage in the press.

Lessons Learned:

• Always verify labelling and authorised claims before marketing.
• Require suppliers to provide full COAs and translations of ingredient lists.
• Keep a UK-based responsible person for supplements.

Case 2: Cosmetic Product Borderline with Medicine

Background:

A wellness brand imported a skin cream from South Korea marketed as “anti-acne treatment”.

The cream contained cosmetic ingredients, but advertising materials explicitly claimed that it “cures acne and prevents breakouts”.

Legal Issues:

• MHRA classified the cream as a medicinal product because of the claims.
• The importer did not hold a medicines licence.
• Breach of the Cosmetic Products Enforcement Regulations 2013.

Consequences:

• Entire product line withdrawn from the UK market.
• The importer had to destroy thousands of units.
• Customers who pre-ordered demanded refunds.

Lessons Learned:

• Marketing claims can shift a cosmetic into the medicine category.
• All copy (labels, website, influencer content) must be pre-cleared by compliance.

Case 3: Data Protection Breach in a Wellness Studio

Background:

A yoga & wellness studio in London collected health questionnaires from clients (injury history, chronic illnesses, mental health info). These were stored on unsecured Google Drive folders accessible to all staff. A breach occurred when an ex-employee downloaded sensitive files.

Legal Issues:

• Health data = special category data (UK GDPR).
• Lack of lawful basis (no explicit consent recorded).
• Inadequate technical safeguards (no encryption, no restricted access).

Consequences:

• ICO investigation → fine of £8,000.
• Obligation to notify affected clients.
• Negative press coverage in local media.

Lessons Learned:

• Always treat health data with the highest protection.
• Use encrypted storage and role-based access.
• Collect explicit consent for health-related processing.

Case 4: Supply Chain Fraud and Escrow Failure

Background:

A UK wellness e-commerce company ordered £100,000 worth of “GMP-certified” protein powders from a supplier in Asia. Payment was made upfront via bank transfer. Upon delivery, products were contaminated and lab tests showed banned substances. The supplier refused refunds.

Legal Issues:

• Breach of contract and misrepresentation.
• No effective dispute-resolution clause (no arbitration clause included).
• UK courts had no easy way to enforce judgment abroad.

Consequences:

• Huge financial loss for the UK company.
• Amazon UK suspended their seller account due to safety violations.
• Litigation in Asia became costly and slow.

Lessons Learned:

• Use escrow accounts or Letters of Credit for large transactions.
• Include arbitration clauses (ICC/SIAC/HKIAC) with enforceability under the New York Convention.
• Demand third-party testing before shipment.

Case 5: ASA Ban on Influencer Marketing for Supplements

Background:

A UK-based supplement brand partnered with TikTok influencers who promoted products as “helping with depression” and “curing anxiety naturally”. Complaints were filed.

Legal Issues:

• Breach of CAP Code (unauthorised medicinal claims).
• Failure to disclose ads as “paid partnership”.
• Misleading vulnerable consumers.

Consequences:

• ASA banned all influencer ads.
• Brand reputation damaged on social media.
• Potential follow-up investigation from Trading Standards.

Lessons Learned:

• Influencers must use #ad or clear disclosure.
• Claims must be authorised and evidence-based.
• Train influencers in compliance before campaigns.

Notice: All names in these examples have been changed to protect confidentiality.

Need help? At Express Law Solutions, we review, draft, and negotiate contracts to ensure they’re fair, clear, and enforceable.

Contact Us: +44 7482 928014 | expresslawsolutions@gmail.com or Book A Conslultation
www.expresslawsolutions.com