What is the value of an “all natural” label to consumers and the company? Does the presence of the label affect consumer purchase decisions? If so, how should we measure the impact of the label? In food labeling litigation, class action plaintiffs often allege that inappropriate labeling affected consumer decision-making. Recent examples include lawsuits over claims of salad dressing ingredients, descriptions of “almond” and “sprouted seed” crackers, and “no sugar added” juices claims. Plaintiffs have also alleged the lack of an appropriate label disclosing that a product contains “artificial” ingredients or preservatives. In this article, the authors discuss some of the economic issues associated with food labeling allegations. To read the article, click the link below.
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