Press Statement

Prop 37 Will Not Change Food Prices

According to the only independent economic analysis of Proposition 37, “Consumers will likely see no increases in prices as a result of the relabeling required” by the Right to Know Act. So why does the opposition claim grocery costs will increase by $400 a year? Those figures are based on a discredited report by Northbridge Consulting, a firm with no economic expertise that is best known for opposing recyling laws for the soda pop industry.

Here are the facts about Proposition 37 as it relates to cost:

Manufacturers continually update labels, and do not pass those costs on to consumers: Prop 37 gives companies 18 months to change their labels to add information about genetic engineering. Most companies change their labels within this time frame anyway. Arran Stephens, president of Nature’s Path, explains, “We, as with most manufacturers, are continually updating our packaging. It's a regular cost of doing business - a small one at that - and is already built into the price consumers pay for products. Claims that labeling genetically engineered foods would increase the price of food for consumers just aren’t true. Companies would certainly be updating their packaging for other reasons within the 18 months they will be given to comply with the new law, and could simply make the additional GMO labeling changes at the same time.”

Labeling costs are low: The average “one-time expense” to redesign labels represents 0.03% of the average annual per-product sales, according to the independent economic analysis of Prop 37 conducted by Joanna Shepherd Bailey, Ph.D., a tenured professor at Emory University School of Law.

Labeling gone wild: The same companies opposed to Prop 37 take advantage of every inch of food packaging space to convince shoppers to purchase their products, yet argue this single, one-time label would be too costly.  In recent years, the FDA, in recognizing that food companies’ “front of package” labeling is so out of control, commissioned two Institute of Medicine reports to make recommendations to add clarity for consumers.

The European Union, Japan, China and many other countries already require labeling of genetically engineered foods, and they don't have higher food costs due to labeling -- only a more informed public. According to David Byrne, former European Commissioner for Health and Consumer Protection of the European Parliament, when the European Union introduced GMO labeling in 1997, "it did not result in increased costs, despite the horrifying (double-digit) prediction of some interests.”

As Dr. Bailey’s report notes, “Finally, even for sellers that may otherwise increase prices to pass on the expense of relabeling, empirical studies show that the fear of losing customers in the competitive food industry will be a deterrent to changing prices. Thus, the prices for many food products will not change as a result of the Right to Know Act.”

No new bureaucracy or red tape either: According to Dr. Bailey's report, Prop 37 will result in negligible costs for the Department of Public Health and will have a "trivial impact on California's budget" -- increasing total state expenditures by an average of only .0008%.

Also see:
Truth about Lawsuits
Truth about Exemptions
Don't let the Pesticide Companies Buy Your Vote!

 

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Showing 22 reactions

commented 2013-09-15 23:49:44 -0700 · Flag
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commented 2013-09-06 10:49:43 -0700 · Flag
Glad to know that food prices will not change. Check more at http://lifeinsurancegreenvillesc.weebly.com/affordable-life-insurance-in-greenville-sc.html .
@keboneil tweeted link to this page. 2012-11-05 08:06:40 -0800
Prop 37: No Cost to Consumers http://t.co/q8PPxjkX
@cjBryant1 tweeted link to this page. 2012-10-25 09:34:18 -0700
Labels are not the concern, everyone wants more info - but who and how much will we pay the "police force" an... http://t.co/JrkMKSzi
@GreenSoil tweeted link to this page. 2012-10-25 09:05:13 -0700
Like Peaceful Valley Farm & Garden Supply says: Voting has started in California! Absentee ballots have been... http://t.co/hKxnIcQc
@HomeGrownEdible tweeted link to this page. 2012-10-25 07:58:16 -0700
Like Peaceful Valley Farm & Garden Supply says: Voting has started in California! Absentee ballots have been... http://t.co/hKxnIcQc
@katzav tweeted link to this page. 2012-10-25 01:05:52 -0700
@tjwriter tweeted link to this page. 2012-10-23 09:49:09 -0700
@WhatsThatSmell tweeted link to this page. 2012-10-23 09:41:08 -0700
@gmofreeSoCal tweeted link to this page. 2012-10-23 09:39:39 -0700
@zomboof tweeted link to this page. 2012-10-23 08:54:48 -0700
@Elantara tweeted link to this page. 2012-10-23 08:54:23 -0700
@Label_GMOs tweeted link to this page. 2012-10-23 08:53:06 -0700
@PakeBeer tweeted link to this page. 2012-10-22 17:12:51 -0700
@b9ace Impression of action in Cali : http://t.co/vU7aNNwf
@noGMOsHollywood tweeted link to this page. 2012-10-22 16:47:59 -0700
@GMOFreeCanada tweeted link to this page. 2012-10-20 13:33:40 -0700
@OnlyColey tweeted link to this page. 2012-10-17 16:29:53 -0700
@skeeterwumpus @carighttoknow The NO on 37 camp is lying about costs: http://t.co/xoRsMBUi. GMOs aren't healthy: http://t.co/n8KB6AEX
@HealingMindN tweeted link to this page. 2012-10-17 15:56:13 -0700
Prop 37: NO COST to Consumers, Does NOT hit consumers in the wallet per claims by Monsanto Lackeys http://t.co/KyPTN8Ab
@VickiKeller tweeted link to this page. 2012-10-15 17:09:35 -0700
Prop 37: No Cost to Consumers http://t.co/WekPS9ne
@SeekerOfHealth tweeted link to this page. 2012-10-15 16:59:54 -0700
Prop 37 will not change food prices. Go here to find out why - http://t.co/yI9F3XUY
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