Part 1: Algal Omega-3 – False Label Claims Used to Cut Costs

by René van Hoorn

Algal omega-3 has exploded over the last decade. From the first DHA-rich algal oils in the late ’90s to a wide range of EPA & DHA products today, with vegan soft gels having become the all-time favorite format.

But growth brings challenges. In algal omega-3 products, we’ve seen multiple instances of false label claims. And these aren’t just affecting consumers—they put health brands at risk too.

Why label fraud happens

When a supplement category is quite new, the brand owner is often involved him/herself and driven with passionate to get it on the market. They want to launch a product that works. But once the product proves successful on the market, it attracts new entrants.

These new players typically compete in three ways:

1. Branding differentiation: Buy a similar product and change the packaging.
2. Product “uniquification”: Claim higher levels, add something extra, or use a different application.
3. Cost competition: Lower prices by sourcing cheaper ingredients, scaling, or cutting corners.

It’s the third path—cutting costs—that often leads to fraud. A focus on margins can create a willingness to believe anything that fits the “lower-cost” strategy, leading to tunnel vision and shortcuts.

Real-world examples of label fraud

Example 1: Less DHA than claimed
In our 2024 market research, we tested a range of algal oil soft gels. One well-known European brand focusses on low-cost products. Their label claimed 110 mg DHA per soft gel, but lab results showed only 53 mg—less than half the advertised amount.

We shared the findings with the buyer. Their response? A casual “we’ll check with the supplier”.. and yes, the product is still on the market today.

Example 2: Fake claims in gummies
We also tested algal omega-3 gummies, including an own formula and two other brands. Results in mg EPA+DHA per gummy:

Brand B contained no omega-3 at all—selling candy disguised as a supplement.

Example 3: Wrong on all accounts
A longstanding customer wanted to grow faster in omega-3 and reduce costs. Another supplier offered a 40% lower price than we could. Alarm bells rang.

Analysis revealed:

• The product was in ethyl ester form, typically used for fish oil concentrates.
• The actual EPA+DHA content was 11 mg, far below the 250 mg declared.
• The fatty acid spectrum matched Isochrysis, an algae not approved for human food in Europe.

The supplier later claimed the sample was “just for look & feel,” and then became unresponsive.

Risks for consumers and brands

For consumers: Can you trust the supplement you’re buying? Are you paying for a product that delivers less—or nothing at all?

For brands: Selling fraudulent products—even unknowingly—can devastate your reputation, lead to legal action, and require costly recalls.

How to prevent these risks

Consumers: It’s hard to verify supplements on your own. Look for:

• Brands with strong QA systems
• Evidence of independent testing
• Transparency and Certificates of Analysis (CoAs)

Health brands: You have control. Implement a supplier & product approval process:

1. Analyze your ingredients and finished products.
2. Verify lab data and CoAs.
3. Conduct audits to review flow charts, equipment, and mass balances.
4. Consider independent third-party verification—but nothing beats going in person and seeing the culture yourself.

Want peace of mind about your algal omega-3 supply? Lus Health can help. We provide trusted, sustainable, and high-quality ingredients & products.

Contact us: info@lushealth.com

Would you like to report Fraud in the Food Supplement Industry? contact your National food safety legislator

✅ Next: Cheaper Origins Disguised (and Sold at a Premium) October 28th