How One Tiny Label Mistake Can Cost Your Startup Thousands

You’ve nailed your recipe, your branding is on point, and your Instagram feed looks like an editorial spread but there’s one tiny detail that can crush all that hype: your labels. Yep, the thing most founders rush through is also the thing that can get your product yanked off shelves or worse, land you in hot water legally. Don’t let a missing allergen warning or a sloppy health claim ruin months of hard work.

Kristy Coleman, Legal Director at Ashfords recently joined us at Mission Kitchen to provide expert tips to our members. Here she shares insights on the legal mistake almost every early-stage food startup makes and how to dodge it before you hit print.

1. One avoidable legal mistake that still trips up early food startups?

Rushing product labels to print without checking they meet all legal requirements. Even small errors in ingredient lists, allergen declarations, or nutrition claims can lead to products being pulled from shelves, fines, or reputational damage. This happens more often than you’d think, especially when you assume the “standard template” from a supplier will cover everything. The reality of compliance is product specific. A quick compliance review early on can prevent costly reprints and protect your brand’s credibility.

2. What’s the bare minimum you need legally before launching a food product?

At a minimum, you must have:

• Correct labelling that meets UK food law requirement:  including a full ingredients list in descending order, allergens highlighted in the correct format, net quantity, durability date (“use by” or “best before”), storage conditions, and your business name and address.
• Evidence to back up any claims: whether you’re making “high in vitamin C” or “supports immunity,” you need legally-recognised wording and scientific substantiation to prove it.
• Food business registration with your local authority: which must be done at least 28 days before you start trading.
  

Skipping any of these means you’re technically not legally allowed to sell your product. They’re your non-negotiables.

3. When should a food founder talk to a legal expert and when can they DIY?

You can DIY some basics if you’re willing to learn. For example, using the Food Standards Agency’s allergen guidance or checking the list of authorised nutrition and health claims in the GB Nutrition and Health Claims Register. But health and nutrition claims are where most brands stumble.

The rules are strict:

• You can only use nutrition claims (like “low sugar” or “high protein”) if they appear on the GB Register, and your product meets the exact criteria for that claim.
• Health claims (“supports bone health” or “boosts energy”) must also be authorised, and you must use the approved wording exactly as it appears, no creative tweaks that make it sound “catchier.”
• Even small wording changes can make a compliant claim non-compliant. For example, “supports immunity” is allowed in certain contexts, but “boosts immunity” could be deemed misleading.
• Implied claims count too. Even using certain imagery (like a heart icon or running silhouette) could be interpreted as a health claim and trigger the same evidential requirements.
  

This is why many food founders find it cost-effective to get expert input before making any marketing or packaging decisions that involve claims. An expert can confirm what you can and can’t say, and help you adapt your messaging so it’s both compelling and legal.

4. And one extra tip: why you shouldn’t rely on AI for product reviews:

AI tools can be incredibly helpful for idea-generation and finding resources but they are not a replacement for a proper legal compliance check. There are three main risks:

1. Outdated information: AI models can’t guarantee they’re up-to-date with the latest law changes or ASA rulings.
2. Oversimplification: Complex regulations often have exceptions, context-specific interpretations, and grey areas. AI might give a “yes/no” answer when the real answer is “it depends.”
3. Lack of product context: Compliance advice isn’t one-size-fits-all. The exact ingredients, formulation, target audience, and marketing channels all affect what you can legally say.
   

If you’re going to use AI, use it as a learning tool always have a qualified human review your labels, claims, and marketing materials before launch.