The Swedish Government is proposing new rules to enhance controls of fraud within the agri-food chain

The Swedish Government has submitted a government bill, 2025/26:206, with the purpose of enhancing controls of fraud within the agri-food chain. The Government proposes the introduction of a mechanism allowing central government agencies to assume responsibility for official controls in certain categories of cases of violations perpetrated through fraudulent or deceptive conduct. To enhance the control authorities’ access to information and their ability to conduct effective supervision, the Government also proposes provisions on information-sharing obligations between control authorities within the agri-food chain.

It is proposed that the information-sharing rules enter into force on 1 January 2027 and the amendments concerning the opportunity for a central government agency to assume responsibility on 1 January 2028.

Challenges in the current system

Intentional violations perpetrated through fraudulent or deceptive practices, in other words fraud, in the agri-food chain are not a new phenomenon and have been identified globally, including within the European Union and in Sweden. According to the bill, such fraud includes the use of unauthorised ingredients, the sale of meat from other animal species under false labels, and the dilution of products or their misrepresentation as being organic or of a specific origin. Common to these cases is that they are intentional acts aimed at generating financial gain, the gains from fraud being so substantial and the risk of detection so low that the phenomenon attracts organised crime.

In addition to the economic costs to society, fraud also poses risks that consumers will be forced to pay higher prices for goods of inferior quality or lower value. In the worst-case scenario, food that is directly harmful to human and animal health or the environment may reach the market. It also disadvantages legitimate businesses through unfair competition and undermines trust in brands, while simultaneously entailing a risk that quality labels are undermined by mislabelled and substandard products.

In the bill, the Government notes that the European Commission conducted an investigation into whether the measures taken by Sweden to combat fraud in the agri-food chain were appropriate and effective in the light of the requirements of EU law. The Commission noted that there are deficiencies in Sweden’s implementation of official controls to combat fraud, stating among other things that the Swedish regulation lacks an operational framework for planned fraud control under Article 9.2 of the EU Official Controls Regulation, as the fraud control conducted is primarily event-driven – that is, reactive control occurring as a result of concrete suspicions, tips or complaints.

Swedish government agencies have also stated that the main challenges are shortcomings in risk-based planning and insufficient resources for fraud control, and that there is a need for measures such as easing the rules on confidentiality, establishing a national forum for information exchange and setting up a national specialised operational unit to combat fraud within the agri-food chain.

The proposal

Central government agencies’ assumption of responsibility for control in suspected fraud cases

The Government proposes that a competent authority designated by the Government, the Swedish Board of Agriculture or the Swedish Food Agency shall be empowered to assume responsibility for official controls from a County Administrative Board, a municipality or any other body exercising delegated functions, in relation to suspicion of serious intentional violation committed through fraudulent or misleading conduct. Responsibility may be assumed in such a manner in cases where the suspected violation is particularly extensive or complex, or where there are other special grounds.

Prior to assuming such responsibility, the central government agency must consult with the government agency from which the responsibility is to be assumed, unless the control measure is urgent or consultation would otherwise be inappropriate.

The acts in which it is proposed that the legal provisions regarding assuming responsibility for controls be inserted include, but are not limited to, the Swedish Environmental Code (1998:808), the Swedish Food Act (2006:804) and the Swedish Animal Welfare Act (2018:1192).

Obligation to share information between control authorities

As raised by the Swedish government agencies during the European Commission’s investigation, the current system for exchanging information between control authorities is constrained by rules on confidentiality. The Government therefore proposes the introduction of a general duty to report between control authorities.

This duty to report applies to any control authority that becomes aware of a circumstance which may be expected to lead to a measure under the EU Control Regulation that falls within the sphere of responsibility of another control authority. In such case, the control authority shall notify the competent control authority of this circumstance.

In addition, a control authority shall, upon request, be obliged to provide information to another control authority in the event that the requesting authority considers such information necessary for the purposes of official control. It is proposed that the duty to provide information be inserted in the Swedish Food Act, among other acts.

Setterwalls’ comments

The proposal marks a meaningful step towards more coordinated control of the agri-food chain. Centralised responsibility for the most complex fraud cases, combined with an extended duty for control authorities to share information, addresses weaknesses in a system in which control responsibility has been divided between approximately 270 local and regional authorities, and where planned, risk-based fraud control under Article 9.2 of the EU Control Regulation has in practice been limited.

For operators in the food chain, the practical implications are likely to be twofold. Compliant businesses should benefit from a more level playing field, as more effective detection of fraudulent actors is expected to reduce unfair competition and strengthen consumer trust in quality labels and origin labelling. At the same time, operators may be subject to control by a central government agency in addition to, or instead of, their municipal or regional control authority.

Setterwalls is monitoring the progress of the proposal. Please do not hesitate to contact Setterwalls if you have any questions about the new rules or what they mean for your business.