The National Advertising Division (NAD) has recommended that Oatly Inc. discontinue marketing representations that its oat milks contain “no added sugars.” According to NAD’s summary, the challenger argued that “the hydrolysis process, which turns oats into oatmilk, creates sugars ‘in situ’ as the oats are broken down into smaller components.” NAD considered whether the question fell under its jurisdiction, noting that information appearing in the Nutrition Facts Panel would be governed by the U.S. Food and Drug Administration (FDA). “Without taking a position on whether Oatly’s Nutrition Facts Panels are in compliance with FDA regulations, NAD recommended that Oatly not re-post or restate the ‘added sugars’ line of the Nutrition Facts Panel in its advertising, but noted that nothing in the decision prevents Oatly from using the ‘added sugars’ line of the Nutrition Facts Panel in a context that is not advertising, such as on product packaging for the purpose of complying with FDA regulation,” the board’s summary stated. Oatly has reportedly complied with NAD’s recommendation.

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