Wednesday, December 28, 2005

New Food Labeling Law

The 2004 Food Allergen Labeling and Consumer Protection Act requires food labels to list allergens and takes effect on Sunday. Products must be labeled if they contain peanuts, shellfish, eggs, milk, fish, crustaceans, wheat, tree nuts, or soybeans. The law will protect an estimated 2% of the adult population and an estimated 5% of children. That's assuming that the allergy prone individuals can read English.

The law was prompted by a 1999 study in Minnesota and Wisconsin which indicated that 25% of a sample of baked goods, ice cream and candy didn't list peanuts or eggs as ingredients.

Fine, but I have a comment. Effectively, the law mandates that more than 95% of the population will pay for a benefit for less than 5% of the population who are allergic. Labels are part of the production process and any change or addition will add to the cost of products. When the cost increases to the producer, it translates into a price increase for the consumer. Consequently, out of 20 people, on average 19 will see increased prices from the new labeling requirements with no discernible benefit.

Of course, there's always the bright side. The new labeling requirements will have to be enforced which would necessitate the creation of a new government labeling complaint processing and enforcement bureaucracy. This means more government jobs. And lawsuits, let's not forget about lawsuits. Surely, attorneys and legal clerks are waiting in the wings to take down an evil corporation that forgot to put "Contains shellfish" on a live lobster.

On Sunday, the United Nanny States of America will impose new restrictions on business in the journey toward achieving utopia on Earth. At the end of the road is everything for everybody all the time, at no cost, and the complete elimination of risk in the lives of human beings everywhere for all time.

Doesn't it just make you feel warm and cozy?

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