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Book part
Publication date: 29 August 2018

Paul A. Pautler

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the…

Abstract

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

Details

Healthcare Antitrust, Settlements, and the Federal Trade Commission
Type: Book
ISBN: 978-1-78756-599-9

Keywords

Article
Publication date: 15 February 2011

Fiona Lalor and Patrick G. Wall

The purpose of this paper is to review and compare the scientific and regulatory environments for nutrition and health claims on foodstuffs in the USA, Japan and the…

1845

Abstract

Purpose

The purpose of this paper is to review and compare the scientific and regulatory environments for nutrition and health claims on foodstuffs in the USA, Japan and the European Union.

Design/methodology/approach

A review of the literature and the relevant legislation in the three different countries is conducted. Regulations are reviewed and scientific evidence requirements are outlined in each country.

Findings

Full regulatory approval for claims across all three countries requires the support of robust scientific evidence. To obtain this, companies must submit comprehensive dossiers and detailed applications to the regulators with full descriptions of the tests and studies completed during product development. However in the USA and Japan, an alternative process exists. A health claim that is suggested but not supported by scientific evidence is known as a qualified health claim and is permitted in the USA and Japan, but not in the EU.

Practical implications

The paper demonstrates the difference in regulatory requirements in different countries which leads to different claims being permitted in different countries. It also leads to different levels of scientific support for similar claims which causes consumer confusion and develops an uneven playing pitch for the industry. Given that the industry operates in a global market place, it is imperative that a consensus is reached as to the level of scientific evidence required to approve a health claim. In that way, consumers can be safeguarded from being misled, consumer confusion will not be a concern and products can be globally distributed in line with the increasing liberalisation of trade.

Originality/value

This paper is of value to regulators and the food industry.

Details

British Food Journal, vol. 113 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 7 September 2012

James Langenfeld and Brad Noffsker

In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired…

Abstract

In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to compete on the basis of health claims or the introduction of potentially safer cigarettes since the 1950s, and (2) engaged in fraudulent advertising by making implied health claims in advertisements selling ‘low tar’/‘light’ cigarettes. In this type of litigation, defendants’ actions could be due to alleged illegal behaviour as asserted by plaintiffs, or be the result of market forces that may have nothing to do with allegedly inappropriate acts. We examine the economic evidence relating to these allegations, taking into account some of the major influences on cigarette company behaviour. In particular, our analyses show that much of the cigarette manufactures’ behaviour can be explained by Federal Trade Commission and related government actions, rather than conspiracy or fraudulent acts. We find the economic evidence is inconsistent with an effective conspiracy to suppress information on either smoking and health or the development and marketing of potentially safer cigarettes. Regarding ‘lower tar’ and ‘light’ cigarettes, the economic evidence indicates that the cigarette manufacturers responded to government and public health initiatives, and that disclosing more information on smoking compensation earlier than the cigarette companies did would not have had any significant impact on smoking behaviour.

Details

Research in Law and Economics
Type: Book
ISBN: 978-1-78052-898-4

Keywords

Article
Publication date: 1 May 1998

Nancy M. Childs

Enormous variation exists internationally in the regulation of nutrition and health messages on the food label. For the consumer, the health claim on the label becomes a…

1911

Abstract

Enormous variation exists internationally in the regulation of nutrition and health messages on the food label. For the consumer, the health claim on the label becomes a value‐added point of product differentiation. Therefore, for the food industry, access to a health claim is a key marketing variable. It is important to understand the role of the public policy process in establishing health claims as developing nations mature and choose an approval process to advance their own food regulatory environment. Their choice of approach, and the type of participants contributing to the process, will influence the type of health claim outcome and the latitude of marketing permitted on the food label. This paper identifies and compares the regulatory approaches, in effect in early 1977, used to establish health claims in Japan, Australia and the European Union. There does not seem to be a clear international “lead” nation regulatory model for health claims, and this suggests global economies of scale are elusive for product development and marketing based on health claims.

Details

British Food Journal, vol. 100 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 9 November 2015

May O. Lwin

The purpose of this paper is to fulfil gaps in knowledge regarding food packaging practices in Southeast Asia by examining the informational content of food labels on a…

1336

Abstract

Purpose

The purpose of this paper is to fulfil gaps in knowledge regarding food packaging practices in Southeast Asia by examining the informational content of food labels on a variety of packaged foods.

Design/methodology/approach

Using local and imported food products found in supermarkets in Singapore, a quantitative content analysis of food label claims in a wide range of packaged food products was conducted. A codebook was developed to capture the attributes of the food labels and claims, content categories, product names, food categories, sources of manufacture and countries of brand origin. The three main regions of analysis of country of manufacture were the USA, European Union (EU) and Southeast Asia.

Findings

Analysis of food products manufactured in five Southeast Asian countries revealed the presence of various claims in food products, and a number of specific claims exceeded the percentages found in products from the USA or EU. The results showed that a significant proportion of products from Southeast Asian countries display nutrient content and nutrient function claims, as well as general marketing claims and non-nutrient claims. However, there were variations in practice amongst the five Southeast Asian countries.

Research limitations/implications

The sample was limited in being collected from one geographic location. Future research needs to expand data collection both geographically and longitudinally.

Practical implications

The findings are valuable for the national health authorities in addressing policies on food package labelling, and homogenization efforts pertaining to regional/international labelling policies. These in turn could influence food marketing practices.

Social implications

The findings are useful in crafting educational programming and guidelines for health and nutrition education.

Originality/value

This research is the first to explore food labelling practices in multiple Southeast Asian countries and compare them cross-sectionally with EU and US practices.

Details

Journal of Consumer Marketing, vol. 32 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 7 November 2016

Sukhada Khedkar, Stefano Ciliberti and Stefanie Bröring

One of the objectives of the Nutrition and Health Claims Regulation (EC) No. 1924/2006 (NHCR) is protection and promotion of innovation in the food industry. The purpose…

Abstract

Purpose

One of the objectives of the Nutrition and Health Claims Regulation (EC) No. 1924/2006 (NHCR) is protection and promotion of innovation in the food industry. The purpose of this paper is to explore the impact of the NHCR on both innovation and the sourcing of external knowledge in the European Union (EU) food sector.

Design/methodology/approach

An online survey was conducted which resulted in a sample of 105 EU companies for the study. Structural equation modelling was used to examine the nature of relationships that existed among the challenges related to the implementation of the NHCR, external sources of knowledge and innovation.

Findings

Challenges related to the NHCR are currently found to have a negative direct impact on product innovation. However, they have a positive indirect effect on product innovation, especially in the case of small and medium-sized enterprises. They also seem to positively affect external knowledge sourcing. Additionally, sources of external knowledge are found to have a positive effect on product and process innovations.

Practical implications

This study provides insights to different stakeholders in the food industry who might wish to work jointly and address the various issues related to the requirements of the NHCR and facilitate compliance with the regulation.

Originality/value

Understanding the impact of the NHCR on innovation seems pivotal because innovation plays an important role in the EU food sector. To this purpose, the paper delivers insights into some main compliance challenges and their effect on innovation.

Details

British Food Journal, vol. 118 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 25 February 2014

Ekaterina Salnikova, John L. Stanton and Neal Hooker

– This paper aims to compare the use of front-of-pack nutrition claims made on 32,257 food labels launched in 2009 in the US and the EU.

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Abstract

Purpose

This paper aims to compare the use of front-of-pack nutrition claims made on 32,257 food labels launched in 2009 in the US and the EU.

Design/methodology/approach

Information from Mintel's Global New Product Database was analyzed, for 25,417 products launched in the EU and 6,840 in the US. The hypothesis was that “products launched in the US and EU have a different frequency of front-of-pack nutrition claims”. Using inferential statistics, significant differences (two-tailed Z-tests) in the number of claims are explored and compared to differences in legislation standards and consumer preferences.

Findings

The initial analysis revealed that there were six significant differences between the presence of the seven health and nutrition claims across 16 product categories in the US and the EU. Further analysis of the 16 product categories revealed a range of significant differences between the frequency of US and EU claims.

Originality/value

The emerging relevance of front-of-pack nutrition labeling as a marketing tool makes such differences pertinent. This paper marks the first systematic comparison of the use of claims between the US and EU.

Details

British Food Journal, vol. 116 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 17 September 2020

Marco Pichierri, Alessandro M. Peluso, Giovanni Pino and Gianluigi Guido

This research investigates the effectiveness of the four health claims that the European Union (EU) authorized for extra-virgin olive oil (EVOO) in terms of perceived text…

Abstract

Purpose

This research investigates the effectiveness of the four health claims that the European Union (EU) authorized for extra-virgin olive oil (EVOO) in terms of perceived text clarity, text interestingness, message credibility and information diagnosticity, along with the claims' effect on product attractiveness and consumers' purchase intention.

Design/methodology/approach

An experimental study with 185 participants investigated consumer response to the four claims. A one-way MANOVA analyzed differences in the aforementioned variables, while a sequential mediation model assessed the relationship among perceived text clarity of the EVOO health claims, information diagnosticity, product attractiveness and purchase intention.

Findings

The four EU-authorized health claims differ in terms of perceived text clarity, message credibility, information diagnosticity and product attractiveness. Specifically, the health claim on EVOO polyphenols scored lower than the other three health claims on the aforementioned dependent variables. Importantly, clearer health claims are perceived as more useful and may increase product attractiveness and consumers' purchase intention.

Originality/value

The research sheds light on the effectiveness of EVOO health claims. Since the use of such health claims is not a common practice in the EVOO market, a deeper understanding of consumers' perception and attitude toward them could inspire better guidelines and suggestions for claim usage and improvement.

Details

British Food Journal, vol. 123 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 September 2016

Marin Cagalj, Rainer Haas and Ulrich B. Morawetz

Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would…

Abstract

Purpose

Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would change the willingness to pay (WTP) for organic products in Croatia.

Design/methodology/approach

For estimating the WTP under different claims the authors used an experimental auction. Participants (258) bid for real food products (organic and conventional tomatoes and apples) and are endowed with cash at a location where they usually go shopping.

Findings

For the sample the authors find that consumers are willing to pay on average a premium of 42 percent for organic apples and 59 percent for organic tomatoes. On top of that, WTP increases between 16-20 percent for environmental claims and 12 percent for health claims. Taste-related claims are not significant.

Practical implications

Sellers and producers of organic food can benefit from adding claims to organic labels. To protect consumers from manipulation, regulators are well advised to be cautions when allowing claims about credence attributes of food.

Originality/value

The authors quantify the influence of claims about organic products on the WTP by using experimental auctions which are particularly suitable to investigate effects which cannot be observed on the market.

Details

British Food Journal, vol. 118 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 10 November 2014

Leonardo Casini, Caterina Contini, Nicola Marinelli, Caterina Romano and Gabriele Scozzafava

The purpose of this paper is to verify the market potentials of health claims by means of a study that tests the effectiveness of extra-virgin olive oil promotion based on…

Abstract

Purpose

The purpose of this paper is to verify the market potentials of health claims by means of a study that tests the effectiveness of extra-virgin olive oil promotion based on the nutraceutical indications recently authorised by European regulations.

Design/methodology/approach

The methodology utilises a discrete choice experiment on a sample of Italian consumers. Market segmentation is performed by means of applying a latent-class model.

Findings

The health claim proves particularly interesting for two consumer segments: the “functional claim seekers” (24 per cent) and the “reduction of disease risk claim seekers” (13 per cent). The former segment consists of young, single males who prefer more moderately priced olive oils. The latter is instead made up of elderly individuals who prefer an explicit message on disease and are oriented towards the higher price ranges.

Practical implications

The potentials in implementing a promotional strategy based on the awareness of olive oil’s nutraceutical properties are demonstrated. Strategies will have to target specific characteristics of the various consumer segments.

Originality/value

This paper has confirmed the opportunities that the recent European regulations on health claims have introduced for the olive oil market. This form of promotion could prove particularly important for quality productions that are often insufficiently recognised vis-à-vis their high production costs.

Details

Nutrition & Food Science, vol. 44 no. 6
Type: Research Article
ISSN: 0034-6659

Keywords

1 – 10 of over 22000