HFSS regulation: Mandatory data reporting and targets to replace restrictions on promotions for retailers

The UK government announced last week that there will be a significant shift in its approach to regulating the promotion of high fat, salt, and sugar (HFSS) products. Health Secretary Wes Streeting’s announcement marks the beginning of a new “healthy food standard” that prioritises mandatory data reporting and flexible health targets, rather than the implementation of blanket restrictions for HFSS product placement and volume promotions for larger retailers.

The volume promotion restriction for certain HFSS products was due to come into force on 1 October 2025 in England as part of the Food (Promotion and Placement) (England) Regulations 2021, in addition to the earlier HFSS product location restriction for areas such as store entrances, aisle ends, checkouts (and their online equivalents) that’s been in force since 2022.

Previously, on 3 July 2025, the Labour government published its 10-year health plan for England. This outlined the intention to introduce mandatory health food sales reporting for large companies by the end of the parliamentary term. These figures will then be used to set mandatory targets to increase sales of healthier foods. The government continued that, given its outcome-focused approach to regulation, it expected to repeal the restrictions on multibuy promotions for HFSS products, which were introduced by the previous Conservative government. While the government has announced its intention to repeal the law, the repeal itself is subject to parliamentary approval and requires formal legislative action, creating a degree of uncertainty about the final outcome.  

The much-delayed restricted volume price promotions on certain HFSS foods would have concerned either a multibuy promotion (eg, three products for the price of two) or a promotion that indicates that an item is free (eg, ‘buy one get one free’). Discount promotions such as ‘50% off’, ‘half off’ or ‘save £1’ were out of scope of this policy. Free samples or vouchers for free products were also not in scope of the volume price promotion restrictions. ‘Meal deals’, where foods are promoted as intending to be consumed together, would similarly be out of scope of volume price promotion restrictions.

Instead, Streeting says retailers will now be “set free to do what they think will work” in order to determine how best to encourage consumers to make healthier choices. Each retailer will therefore have scope to tailor its approach in accordance with its unique business model and store format. This may include innovation and changes in areas such as:

• Product placement
• Promotional strategies
• Loyalty schemes

Central to the strategy is the introduction of mandatory health reporting. This is a new obligation which requires larger food companies to disclose their proportion of healthy sales. This builds on the work of the Food Data Transparency Partnership, which had previously proposed voluntary reporting of this data. The government aims to publish this data “very quickly” to establish the current situation and is seeking to drive change by ensuring accountability against targets.

Streeting’s “smarter regulation” approach reflects the intention to work collaboratively with industry by utilising retailers’ strengths, such as the ability to encourage consumers to purchase products, and therefore lead to the making of healthier choices. This is instead of imposing blanket restrictions that were difficult to enforce. The intention at the core of these plans is to provide achievable targets that align with the policy aim of tackling obesity. The plans do, however, have the effect of moving public policy objectives onto the private sector for this multi-faceted issue. One concern here would be whether the extra regulatory burden of mandatory data reporting extends further to all producers and how this data may be interpreted. Also, whether penalties may be introduced in time where centrally set targets are not met.

Nevertheless, the move away from imposing inflexible restrictions on larger retailers in their layout and promotions should certainly be welcome.  

The government has said it will “move quickly” to implement these changes, but it’s not yet clear whether this will mean that the new promotional restrictions due to come in on 1 October will be scrapped before they come into force or not. It also means there are questions about the existing location restrictions and when they will be changed. So, forward looking legal guidance on this issue will be essential.

Whether you’re a household name or a challenger brand, the regulatory and compliance team at Mills & Reeve are expertly placed to aid navigation through such regulatory changes.