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Do firms leverage the FDA nutrient label rounding rules to generate favorable nutrition fact panels or health claims?

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  • Wright, Melissa A.
  • Beatty, Timothy K.M.
  • Chouinard, Hayley H.

Abstract

The increasing incidence of nutrition related health concerns has made food labeling an important policy issue. Previous work suggests the importance of communicating nutrition information to consumers through product packaging. This paper investigates the role of labeling guidelines, which allow the rounding of calorie and nutrient levels on nutrition fact panels and affects front of package claims. We examine ready-to-eat cereal products as a bundle of nutrient attributes, and estimate the likelihood and magnitude of the rounding of specific nutrients and calories. We find systematic rounding, both up and down, of several nutrients, which affects allowable health claims and may influence consumer product choice and health outcomes.

Suggested Citation

  • Wright, Melissa A. & Beatty, Timothy K.M. & Chouinard, Hayley H., 2020. "Do firms leverage the FDA nutrient label rounding rules to generate favorable nutrition fact panels or health claims?," Food Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:jfpoli:v:91:y:2020:i:c:s0306919219306293
    DOI: 10.1016/j.foodpol.2019.101807
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    More about this item

    Keywords

    FDA labeling guidelines; Front of package; Health claims; Nutrition fact panel; Rounding;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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