(Not So) Hidden Costs

My first question whenever I hear some advocacy group demanding changes to product labeling to address their particular pet issue is “How much will it cost?”  These groups always seem to airily dismiss these costs as inconsequential, especially given how serious their perceived problem is (“If it saves just one life….”).  After finishing up at the range last night my coworker and I got into a discussion about a proposed change to product labeling requirements to indicate the number of calories per container (for containers likely to be consumed as one serving) versus the number of calories per serving (which is what is currently on there).  My first reaction was why should companies have to spend millions of dollars to change these labels because people are too stupid to do simple math (i.e. third grade multiplication).

In an interesting bit of synchronicity, today’s Atkins email newsletter had an article on food labels that mentioned a new requirement to list the trans-fat content of food in 2006.  In doing some research on the topic I also came across another new change that is coming soon.  Last year, Congress passed a law requiring that all meat products identify their country of origin by September 30, 2004.  It turns out that this requirement is pretty costly.

Last month, the USDA estimated the mandatory labeling program would cost American food makers up to $3.9 billion in its first year.

Good grief!  $3.9 billion isn’t just petty change.  Given an estimated 270 million people in America, that’s $14.44 per person in the first year.  Since money doesn’t grow on trees, you can be assured that this cost will come directly to all of us (well, except those loony PETA fools who don’t eat meat). 

It turns out that these labeling requirements can be even more expensive than I imagined.

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