Labeling, Legislation and Oversight

Consumers use labels such as food labels to help them make the choices that maximize their satisfaction and well-being. Labels are especially useful when making choices about goods that have experience or credence characteristics. Experience goods are those for which a consumer cannot ascertain quality until after the good is used, such as the amount of chicken in chicken soup. Credence goods are those for which a consumer cannot ascertain quality, even after the product is used or consumed, as in the case of organically produced foods. Federal legislation is often passed for the labeling of goods with experience and credence characteristics.

Oversight for food labeling in the United States falls under the purview of both the Food and Drug Administration (FDA) and the Federal Trade ...