The National Consumer Tribunal has confirmed a settlement agreement entered into between the National Consumer Commission (NCC) and a peanut butter manufacturer, which has agreed to pay an administrative fine of R500 000.

The NCC and the supplier concluded a settlement agreement on February 25.

The NCC then referred the settlement agreement to the tribunal. On June 3, the tribunal confirmed the settlement agreement and made it a consent order in terms of Section 74(1) of the Consumer Protection Act (CPA).

In February 2024, the NCC received peanut butter recall notifications from Dis-Chem and Pick n Pay owing to elevated levels of aflatoxin found in certain brands of peanut butter.

Upon engaging with the retailers, the NCC discovered that both had ordered their products from the same manufacturer.

The NCC then consulted with the manufacturer to understand its processes. The manufacturer informed the NCC that it also produced items for other suppliers.

The manufacturer subsequently recalled all affected products through a series of product safety recalls, which commenced on February 2, 2024.

The NCC established that the affected products had higher than legally acceptable levels of aflatoxin as set out under R1145 Regulation Governing Tolerance of Fungus-Produced Toxins in Foodstuffs.

Based on this information, the NCC initiated an investigation into the affairs of the manufacturer.

NCC notes that the investigation revealed that between May 11, 2023, and November 6, 2023, the manufacturer imported and supplied contaminated, decayed and impure peanuts, groundnuts and byproducts to South African consumers through various retailers.

“The respondent imported the products from Malawi and Zambia using trucks and trailers via land borders and port entries. The trucks and trailers did not have the requisite certificates of acceptability required for the transportation of food.

“Further laboratory test results from various accredited food testing laboratories established that the products were contaminated, decayed and impure,” the tribunal noted upon granting the consent order.

“The NCC welcomes this consent order as it brings this matter [against the manufacturer] to a finality.

“It is incumbent upon suppliers of food products in the South African market to ensure strict compliance with food safety regulations and the Consumer Protection Act,” says acting Commissioner Hardin Ratshisusu.

A similar case between the NCC and another manufacturer of peanut butter implicated in this matter is still ongoing.