The Problem Analysis Of Information Failure On Food Products Essay

1300 Words Oct 30th, 2016 6 Pages
The problem analysis of information failure on “natural” label food products examines whether government intervention is needed or if the market is able to resolve the problem on its own. The market failure for this regulatory rule has been a significant information failure of labeling food products “natural” by the food manufacturers. The food industry market fails to provide all the information required by consumers to make healthy rational consumption decisions. Mislabeling the term “natural” on food products is affecting consumers of all types. Even the most educated consumers on nutrition knowledge have a hard time understanding the true definition of the term “natural” on food products. The inadequate actions of the FDA in not defining “natural” clearly to consumers has inhibited many consumers to make bad rational consumption decisions on food products. Not only does misinformation affect their decision on food products but it also impacts their health and nutrition as well. With an in-depth look at the qualitative and quantitative analysis along with market feasibility will create a pivotal decision for the government to decide to either intervene or leave it to the market itself.

Qualitative Analysis of Misinformation on Food Labels

The majority consumers of food products are negatively affected by the misinformation of “natural” on food labels that has inhibited many consumers to make healthy rational consumption decision. The population group that is most…

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