Understanding Process Labels and Certification for Foods

Understanding Process Labels and Certification for Foods

May 12, 2017
Understanding Process Labels and Certification for Foods
Over the years, Congress has taken an active role on issues
referencing this program requires agency approval (50
related to the labeling and certification of food products.
C.F.R. 260). Advocacy groups are now working to integrate
The Food and Drug Administration (FDA) and the U.S.
this program with broader seafood safety initiatives.
Department of Agriculture (USDA) are responsible for
The Federal Trade Commission maintains “Green Guides”
administering and enforcing such claims. FDA and USDA
to help marketers avoid making deceptive claims across a
are the primary federal authorities responsible for assuring
range of consumer products (including foods) and across a
that foods sold in the United States—both domestic and
range of marketing strategies (e.g., labeling, advertising,
foreign—are safe, wholesome and properly labeled (neither
promotional materials, wording, symbols, emblems, and
false nor misleading). Other agencies also play a role.
logos). These guides focus on environmental claims and
Under current law, mandatory food labeling authorities
were first introduced in the 1990s to address concerns about
cover nutrition content in foods (21 U.S.C. 343), inspection
the proliferation of process label claims and certifications.
labels and pack dates on meat and poultry products (21
Separately, environmental claims often follow standards set
U.S.C. §601 et seq., 21 U.S.C. §451 et seq., and 21 U.S.C.
by the International Organization for Standardization, an
§ 1031, et seq.), and country of origin labeling for certain
independent, non-governmental organization (NGO).
agricultural products (19 U.S.C. §1304). Food treated with
irradiation must also be labeled (21 C.F.R. 179).
State governments also have their own food labeling laws.
Most states require certain food date labeling: A calendar
In addition to mandatory food labels, voluntary labeling
date is displayed on a food label, accompanied by an
programs for foods are also subject to federal oversight.
USDA’s
explanatory phrase such as "sell by," "use by" or "best by."
National Organic Program covers foods produced
Federal law does not require standardized date labels.
according to established federal organic standards, subject
Instead, date labels often vary widely across state and local
to USDA oversight and regulation (7 U.S.C. §6501 et seq.).
jurisdictions. In addition, nearly all U.S. states have "state
Similarly, in 2016, Congress enacted the National
grown" or "locally grown" branding programs that advertise
Bioengineered Food Disclosure Standard (P.L. 114-216),
requiring USDA to establish a “
agricultural products grown within a state (e.g., Florida
national mandatory
citrus, Washington apples, Maine potatoes, or California
bioengineered food disclosure standard.” Bioengineered
peaches). Most states also enforce their own “cottage food
foods bearing such a disclosure will need to be labeled in
laws” for local and small-scale food production, which
accordance with forthcoming USDA regulations and
often include labeling requirements. Several states also
established federal standards. The National Oceanic and
have laws regarding the use of biotechnology and added
Atmospheric Administration oversees a voluntary seafood
growth hormones in foods, which may affect food labeling.
and fisheries inspection program. Any product labeling
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Understanding Process Labels and Certification for Foods

Table 1. Selected Voluntary Food Product Label Categories and Selected Examples
Environment/
Religious
Local Business
Sustainability
Animal Welfare
Health/Nutrition
Human Rights/
(production and
Promotion
(environmental
(humane treatment of
(ingredients, dietary
Ethics (labor
preparation as
(local/regional or
protection in
animals to produce animal-
restrictions, handling,
conditions, treatment,
defined in religious
geographically distinct
production)
based products)
processing, and inspection)
and worker pay)
texts)
production)

Source: CRS. Other labels and certifications can be found at the Ecolabel Index, global directory of ecolabels (www.ecolabelindex.com).
Voluntary Labeling Programs
Single-Attribute
Multi-Attribute/Practices
The vast majority of food labeling and certification schemes
Contain/Free of GE Product Bird Friendly
are voluntary, often initiated by private industry, food
retailers, NGOs and advocacy groups, and partnerships
Dolphin-Safe Tuna
Rainforest Alliance Certified
between NGOs and businesses. Compliance with voluntary
Pasture-Raised Eggs
Fair Trade
labeling claims or certification standards is either self-
enforced by the producer, verified by an organization to
Radura (Irradiated)
Free Range, Humanely Raised
which the producer belongs, or verified by an independent
Hormone (rbST)-Free Milk
Religious (Halal, Kosher)
third party. Such labels and certifications are generally not
Vine-Ripened Tomatoes
“Clean and Simple,” Smart Label
subject to direct federal or state regulation or oversight
unless a product is found to violate food safety laws or
Shade-Grown Coffee
Organic, Sustainably Produced
other general container/packaging requirements intended to
Source: CRS derived from CAST Issue Paper #56 (October 2015).
facilitate interstate or international commerce.
Some food companies and manufacturers may choose to
There is no comprehensive estimate of the number of food
include private process labels and certifications. Examples
labeling schemes, but indications are that hundreds of
of the types of product attributes claimed are food safety,
private label/certification programs exist, claiming a wide
quality, freshness dates, nutrition, cleanliness, natural,
range of product attributes and characteristics. The Ecolabel
healthy, “free-of” claims, organic, GMO-free, fair trade,
Index reports that in the United States alone there are more
than 200 “ecolabels” broadly defined across a range of
cage-free, free-range, humane animal treatment, dolphin
free, sustainable, kosher, halal, bee- or bird-safe, local, and
attributes and industry sectors, extending beyond food
carbon offsetting (Table 1). These and others may address
products. Globally, the Ecolabel Index reports there are
either a single, specific attribute or a range of attributes that
nearly 150 labels for food and beverages. This list is based
describe a range of impacts or production processes (Table
on self-reporting and is not comprehensive. In actuality, the
2). Consumer trends behind these labels, according to the
number of food-related standards, certifications, and labels
United Nations, reflect diverse concerns: food safety and
is likely much greater. For example, the United Nations
health benefits, corporate social responsibility, production
estimates that there are more than 400 standards,
systems and innovations, sustainability, and food origin.
certifications, and labels related to seafood products alone.
Also, most new food product introductions include health-
Table 2. Examples of Food Process Labels
and nutrition-related claims (e.g., low-salt, low-sugar, low-
fat, low-carbohydrates, high-fiber, gluten-free).
Single-Attribute
Multi-Attribute/Practices
Antibiotic Free
Animal Welfare Approved
Labeling and certification are intended to inform consumers
of a product’s specific qualities through expressed or
Cage-Free Eggs
American Humane Certified
implied claims. Food producers and marketers often seek to
advertise such product information, as such qualities often
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Understanding Process Labels and Certification for Foods
command a higher price and gain a market advantage
As the use of product process labels and certification has
compared to comparable products without such labels. Data
proliferated, so too have reports of fraud and deceptive use
on the value of these product markets are limited.
of these labels. According to a 2016 Tufts University study,
Euromonitor, a global market research company, estimates
some label claims—including organic, bird-friendly,
that the U.S. market for these types of packaged food and
salmon safe, and certified humane—were “consistently
beverages exceeded $200 billion in 2015. USDA-certified
reliable,” whereas other label claims—including vegetarian,
organic foods accounted for a large share of this estimate,
cage-free, free-range, natural, and “no chemicals added”—
with retail sales exceeding $40 billion (or about 20%).
were “not reliable/consistent.”
Pros and Cons of Labeling/Certification
To address such issues, some groups are calling for an
A 2015 Duke University study attributes the increase in the
increased federal regulatory role in food labeling.
number of private food labels and certification schemes to
Recommendations include using mandatory labels as a
increased consumer awareness of the implications of food
baseline, improving third-party certification standards,
production (e.g., environmental impacts, human rights,
creating stronger standards in consumer protection law, and
animal welfare), coupled with consumer demand and
basing requirements on environmental life-cycle analysis.
willingness to pay a premium for products that address
Suggested options include modeling programs after the
attributes important to consumers. Other researchers
USDA-Organic label, with its federal standards and
attribute this increase also to the lack of responsiveness and
enforcement, and encouraging partnerships among
flexibility of government agencies to address production
government, industry, and stakeholder groups. USDA
issues beyond food quality and safety—a void filled by
asserts that labeling schemes work best if supported by
private process labels that provide additional product
clear, achievable policy standards; independent testing,
differentiation and consumer choice. However, lack of
certification and auditing services that measure and
centralized regulation in private programs may allow for
substantiate the validity of the product claims; and
inconsistent standards, lack of transparency, and inaccurate,
mechanisms to enforce labeling requirements.
misleading, and fraudulent claims, resulting in consumer
confusion and mistrust of labels and certification claims.
Renée Johnson, Specialist in Agricultural Policy
Alexis N. Boytim, Research Associate
Label and certification claims are difficult to verify as they
describe specific production methods (e.g., organic,
IF10650
naturally grown) or the implications of such processes (e.g.,
animal treatment, environmental impact, labor conditions).

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