A federal food labeling rule advanced by the Food and Drug Administration could drive up the costs of groceries if implemented – another side effect of Obamacare requirements, according to a Fox News report. Supermarket owners say it could cost them over $1 billion in the first year alone.
What started as an Obamacare rule requiring restaurants to provide nutrition information on their menus has trickled down to grocers, who will be required to label prepared, unpackaged foods such as salad bars, soups and bakery items.
Testing foods for nutritional value will prove costly for grocers, requiring expensive software or off-site laboratory assessments, Erik Lieberman, regulatory counsel at the Food Marketing Institute, told Fox News. And it’s not without penalties.
“If you get it wrong, it’s a federal crime, and you could face jail time and thousands of dollars worth of fines,” Leiberman said.
A 2011 presidential executive order requires agencies to produce a cost-benefit analysis on all new regulations, but critics of the labeling requirement said the FDA did not do that for this rule.
“They are required to do it, and they didn’t,” Lieberman said. “They simply said, ‘We can’t quantify a benefit from this rule,’ and that’s because they really can’t.”
The FDA is taking public comments and is expected to reach a decision in the spring.
See the entire Fox News report here.
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