Food Network said it would not pay $7.7 million in fines from federal and state authorities over allegations of food fraud in the U.S. and Mexico.
The network said in a statement that it “admits that it has failed to ensure that its food and beverage programs are compliant with the applicable law and regulations.”
The network is also investigating the case of a man who said he was sold $4,500 worth of chips and other items and paid $5.00 to $8.00 for them in the United States.
“We understand that many of our consumers have been misled by Food Network and that we have made significant mistakes,” Food Network wrote.
“We are taking immediate steps to ensure our programs are safe, secure and provide our customers with the best possible value.”
Fraud investigators are looking into a second case of counterfeit chips, according to the Federal Trade Commission.
The investigation was launched in May by the Federal Bureau of Investigation, which said in October it received reports of counterfeit chip products.
Fraudsters have been stealing and selling counterfeit chips since the early 2000s, according the FTC.
The agency said it received two separate reports in October that a man had been buying counterfeit chips in the San Francisco Bay Area and in Texas.
“In addition to its ongoing investigation, the FTC has been in contact with numerous other law enforcement agencies across the country, including California, Texas, and Florida,” the FTC said in an October statement.
The FTC has issued more than 200 warnings and subpoenas related to the fraud.
Food Network did not respond to ABC News’ request for comment.