Business

Legal Consideration for Labelling

There is a long history of legal concerns surrounding labels, packaging, and general products. In 1914, the US Federal Trade Commission Act held that false, misleading, or deceptive labels or packages constituted unfair competition. The fair packaging and labeling Act, passed by the US Congress in 1967, set mandatory labeling requirements and encouraged voluntary industry packaging standards.

For example, in the past, the labeling of clothing, furs, and piece goods were often confusing and misleading to the consumer. As a result, three important labeling laws were passed. 

The Wool Products Labelling Act (1940) provides that a clothing product containing any wool must be labeled to explain clearly what kind of wool is used (virgin, reprocessed, etc.) and what percentage of each type is included in the product. 

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The Fur Products Labelling Act (1951) provides that in identifying a fur garment, the label must state the usual or natural name of the fur and its country of origin. And the Textile Fibre Products Identification Act (1958) provides that clothing garments and household textiles, including rugs, must carry a generic description of the fiber content.

The food and drug administration has also established a set of labeling standards for processed foods to ensure full disclosure of their nutritional content. Labels must clearly state the amounts of protein, fat, carbohydrate, and calories contained in the contents of the package. 

Vitamin and mineral content must be expressed as a percentage of the recommended daily allowance. Also, ingredients must be listed in the order in which they are contained in the product.

It should be noted that this is not exhaustive; there are other legal considerations/requirements.

In conclusion, consumers’ desire to satisfy their taste, choice, and other marketing mix elements leads to the mass production of goods and/or services by manufacturers. These goods/services must be differentiated from one company to another. Labeling is one way of differentiating these.

Labeling is so important that most consumers do not remember the brand names of some products consumed, but identify them through labels attached to them. 

Therefore, a label must be well designed and shaped in order to catch the attention of the target and prospective consumers. The social significance of labeling should be considered as well. Necessary legal requirements in respect of labels were exhaustively examined.

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