Effects on Nutrition Label Regulation on Consumer Choice

The U.S. government initiated food labeling reform in 1989, which culminated with the Nutrition Labeling and Education Act (NLEA) of 1990, emphasizing the provision of improved nutrition information on most food products. The goal of such labeling reform has been to provide consistent, readable, understandable and usable food labels that enable consumers to make more healthful food choices. This paper examines the theoretical impact of the new regulations on consumer food choice behavior. The paper first discusses the use and impact of food labels by/on consumers, and uses a choice model to desribe the effects of these new labels on consumer food choice decisions. In particular, the research focuses on two important food attributes, and the presence of information of these attributes through the new nutrition labels, which may influence consumer purchase behavior.