Freshpet's stock crashes 17% after regulators flag misleading dog food ads
Freshpet's stock has dropped sharply after regulators ruled its dog food ads were misleading. The National Advertising Division (NAD) found the company's claims about human-grade ingredients and preparation methods deceptive. Since the decision, shares have fallen by nearly 17%, with further declines expected as legal scrutiny grows. The NAD announced its ruling on March 17, 2026, stating that Freshpet's video ads falsely suggested its dog food was made 'the same way you make healthy food for people' and was human grade. The decision triggered an immediate sell-off, with the stock plunging $7.95 per share—an 11% drop—in a single day, closing at $67.42.
By late March, the decline deepened, pushing prices down to around $63.17. After-hours trading saw further losses, with shares fluctuating between $51.41 and $54.19, depending on the exchange. The downward trend continued for six straight sessions, compounded by Walmart's March 24 launch of a competing product from Farmer's Dog. Legal pressure is also mounting. Law firm Kessler Topaz Meltzer & Check, LLP has begun investigating whether Freshpet violated securities laws. Investors who bought shares and suffered losses may now have grounds for legal action under federal regulations. The NAD has urged Freshpet to pull the misleading ads and revise its marketing claims.
Freshpet now faces both financial and legal challenges after the NAD's ruling. The stock's steep decline reflects investor concerns over regulatory scrutiny and rising competition. With shares trading at their lowest in months, the company must address the advertising issues to stabilise its market position.
