Matthew Lau: Ottawa should stay out of the food labelling business

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The federal government has no idea how consumers want their food packages labelled and has no business dictating it. Read more.

Yet it also concluded that the mandate made consumers worse off: it led to “reductions in self-reported measures of life satisfaction” by “imposing a welfare-reducing moral cost on unhealthy eating.” In other words, people eat unhealthy food because it tastes good and makes them happier. Making people feel guilty about eating unhealthy food reduces their happiness.

Thus even if there are slight health benefits to mandatory labelling, which may or may not be the case, the regulations remain a net loss for consumers. Not to mention the costs of the regulations on food suppliers. Regulatory compliance is no small cost and is inescapably passed on to consumers in the form of higher prices at the grocery store.Article contentnutritional labels on their food.

 

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