Pepsi 2014 Annual Report Download - page 33

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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.
The conduct of our businesses, including the production, storage, distribution, sale, display, advertising,
marketing, labeling, transportation and use of many of our products, as well as our health and safety practices,
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, distributed or sold. Many
of these laws and regulations may have differing or conflicting legal standards across the various markets
where our products are made, manufactured, distributed or sold and, in certain markets, such as developing
and emerging markets, may be less developed or certain. In addition, these laws and regulations and
interpretations thereof may change, sometimes dramatically, as a result of a variety of factors, including
political, economic or social events. Such changes may include changes in: food and drug laws; laws related
to product labeling, advertising and marketing practices; laws regarding the import or export of our products
or ingredients used in our products; laws and programs restricting the sale and advertising of certain of our
products; laws and programs aimed at reducing, restricting or eliminating ingredients or substances in, or
attributes of, certain of our products; laws and programs aimed at discouraging the consumption or altering
the package or portion size of certain of our products, including laws imposing restrictions on the use of
government programs, such as the Supplemental Nutrition Assistance Program, to purchase certain of our
products; increased regulatory scrutiny of, and increased litigation involving product claims and concerns
regarding the effects on health of ingredients or substances in, or attributes of, certain of our products,
including without limitation those found in energy drinks; state consumer protection laws; taxation
requirements, including the imposition or proposed imposition of new or increased taxes or other limitations
on the sale of our products; competition laws; anti-corruption laws; employment laws; privacy laws; laws
regulating the price we may charge for our products; laws regulating access to and use of water or utilities;
and environmental laws, including laws relating to the regulation of water rights, treatment and discharge of
wastewater and air emissions.
New laws, regulations or governmental policy and their related interpretations, or changes in any of the
foregoing, including taxes or other limitations on the sale of our products, ingredients or substances contained
in, or attributes of, our products or commodities used in the production of our products, may alter the
environment in which we do business and, therefore, may increase our costs or liabilities or reduce demand
for our products, which could adversely affect our business, financial condition or results of operations.
Governmental entities or agencies in jurisdictions where our products are made, manufactured, distributed
or sold may also impose new labeling, product or production requirements, or other restrictions. If one
jurisdiction imposes or proposes to impose new requirements or restrictions, other jurisdictions may follow
and the requirements or restrictions, or proposed requirements or restrictions, may result in adverse publicity
(whether or not valid). For example, if one jurisdiction imposes a specific labeling requirement or requires
a specific warning on any product that contains certain ingredients or substances, other jurisdictions may
react and impose restrictions on products containing the same ingredients or substances, which may result
in adverse publicity or increased concerns about the health implications of consumption of such ingredients
or substances in our products (whether or not valid). In addition, studies are underway by third parties to
assess the health implications of consumption of certain ingredients or substances present in certain of our
products, such as 4-MeI, acrylamide, caffeine and sugar. If consumer concerns, whether or not valid, about
the health implications of consumption of ingredients or substances present in certain of our products increase
as a result of these studies, new scientific evidence, new labeling, product or production requirements or
other restrictions, or for any other reason, including adverse publicity as a result of any of the foregoing, or
if we are required to add warning labels to any of our products or place warnings in locations where our
products are sold, demand for our products could decline, or we could be subject to lawsuits or new regulations
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