Pepsi 2013 Annual Report Download - page 26

8
Regulatory Environment and Environmental Compliance
The conduct of our businesses, including the production, storage, distribution, sale, advertising, marketing,
labeling, safety and health practices, transportation and use of many of our products, are subject to various
laws and regulations administered by federal, state and local governmental agencies in the United States, as
well as to laws and regulations administered by government entities and agencies outside the United States
in markets in which our products are made, manufactured or sold. It is our policy to abide by the laws and
regulations around the world that apply to our businesses.
We are required to comply with a variety of U.S. laws and regulations, including but not limited to: the
Federal Food, Drug and Cosmetic Act and various state laws governing food safety; the Food Safety
Modernization Act; the Occupational Safety and Health Act; the Clean Air Act; the Clean Water Act; the
Resource Conservation and Recovery Act; the Comprehensive Environmental Response, Compensation and
Liability Act; the Federal Motor Carrier Safety Act; the Lanham Act; various federal and state laws and
regulations governing competition and trade practices; various federal and state laws and regulations
governing our employment practices, including those related to equal employment opportunity, such as the
Equal Employment Opportunity Act and the National Labor Relations Act; customs and foreign trade laws
and regulations; and laws regulating sale of certain of our products in schools. In our business dealings, we
are also required to comply with the Foreign Corrupt Practices Act and the Trade Sanctions Reform and
Export Enhancement Act. We are also subject to various state and local statutes and regulations, including
state consumer protection laws such as Proposition 65 in California which requires that, unless a safe harbor
level exists and has been met, a specific warning appear on any product that contains a substance listed by
the State of California as having been found to cause cancer or birth defects. See also “Item 1A. Risk Factors
– Changes in the legal and regulatory environment could limit our business activities, increase our operating
costs, reduce demand for our products or result in litigation.”
We are also subject to numerous similar and other laws and regulations outside the U.S., including but not
limited to laws and regulations governing food safety, health and safety, anti-corruption and data privacy. In
many jurisdictions, compliance with competition is of special importance to us due to our competitive position
in those jurisdictions as is compliance with the anti-corruption laws. We rely on legal and operational
compliance programs, as well as in-house and outside counsel, to guide our businesses in complying with
applicable laws and regulations of the countries in which we do business. See also “Item 1A. Risk Factors
– Changes in the legal and regulatory environment could limit our business activities, increase our operating
costs, reduce demand for our products or result in litigation.” and “Item 1A. Risk Factors – Our financial
performance could be adversely affected if we are unable to grow our business in emerging and developing
markets or as a result of unstable political conditions, civil unrest or other developments and risks in the
markets where our products are sold.”
Certain jurisdictions in which our products are sold have either imposed, or are considering imposing, taxes
or other limitations on certain ingredients we use or products we sell. For example, certain federal, state and
local governments in the United States, and in certain other countries in which our products are sold, including
Mexico, have either imposed or are considering the imposition of taxes and other limitations on the sale of
certain of our products, including certain of our products that exceed specified caloric contents or include
specified ingredients such as caffeine. Certain of these governments are also considering proposals to require
labeling of foods that are, or contain ingredients that are, genetically modified and to restrict the use of benefit
programs, such as the Supplemental Nutrition Assistance Program, to purchase certain beverages and foods.
In addition, legislation has been enacted in certain U.S. states and in certain other countries in which our
products are sold that requires collection and recycling of containers or that prohibits the sale of our beverages
in certain non-refillable containers, unless a deposit or other fee is charged. It is possible that similar or more
restrictive legal requirements may be proposed or enacted in the future. See also “Item 1A. Risk Factors –