A few years ago, the U.S. Department of Agriculture banned the sale of the candy-flavored candies.
Since then, the candy industry has gone from being a small, but profitable industry to one that is growing exponentially, according to an analysis by the Consumer Federation of America.
The group is calling on the U,S.
Food and Drug Administration to ban the candy products and to mandate the labeling of the ingredients.
The Food and Drugs Administration is expected to release its final rules for the food additive and flavorings in the next couple of months, which are expected to include language banning the sale, distribution and consumption of Smarties.
Smarties, a mixture of sugar, corn syrup and other ingredients, was the first food additive banned by the FDA in 2010.
The agency said it made the decision because the ingredients were deemed unsafe and no longer warranted a safety standard.
Now, the industry is growing again.
The American Chemistry Council, an industry trade group, said last week that sales have surged by 100 percent since the ban was lifted.
The industry’s sales rose to $10.9 billion in the second quarter of this year, up from $1.5 billion a year earlier, according a Reuters poll of industry sources.
But the consumer group said that the surge in sales has not translated into any significant growth in the number of Smarty customers, which dropped from 4.2 million to 1.7 million between 2011 and 2013.
“Despite the surge, Smarties sales have not grown by the number the industry projected they would,” said CFA President and CEO John L. O’Connor.
“It’s the same old story: A company gets a new product, but customers don’t like it, and the companies struggle to figure out a solution.”
He called the industry’s growth “a bit of a Catch-22.”
The industry has been working for years to get Smarties into stores and schools, O’Connors group said in a statement.
“The time has come for the federal government to take action to protect consumers from the risks posed by this dangerous and addictive additive.”
The group said the government must establish a strict and enforceable regulation that is based on the safety of Smartys ingredients, and that it should require the company to disclose the ingredients, labeling and ingredients list.
The Federal Trade Commission could impose a $200 fine for each time a company fails to comply.
The Consumer Federation has filed a complaint with the Federal Trade Board seeking a court order requiring the Food and Tobacco Institute of America to stop marketing Smarties to school children and students of the public schools.
The groups group called on the agency to require manufacturers of Smartylis and its derivatives to disclose ingredients and ingredients lists of all products.
The FDA has been in the midst of a review of Smartie products for more than a year and has said it will issue final rules sometime in the fall.
The federal government has also set aside $3.8 billion for a new drug-labeling and safety assessment program to develop a list of Smartypants, which would be a “one-stop shop for all FDA-regulated food additive safety information,” according to the White House.
In January, the Consumer Product Safety Commission, an independent federal agency, said the industry was still developing Smarties safety standards and had not been able to identify any approved formulations.
The CFA group said it’s “disappointed” with the agency’s decision, but that it’s been working on it for several years.
“This is a long-term, complex task that requires an effective partnership with the FDA and the industry, but we look forward to working with the commission to get it right,” O’Conners said.
Smarty sales are expected continue to grow.
The number of customers who said they use Smarties has nearly doubled in the last year, according with the American Chemistry Association.
The company, which has more than 7,000 products on the market, has a $4 billion sales and profit margin, according the Consumer Financial Protection Bureau.
The CPSC’s research showed that Smarty use has increased since 2011, when the FDA first banned the products.
Since 2011, the company has had nearly 2,000 Smarties recalls, according data from the CPSC.
The Smarty recall was the largest in the company’s history, with 3.3 million Smarties recalled.
The candy has been linked to cancer and birth defects.