The Food industry market fails to provide all the information required by consumers to make a rational consumption decision. The information failure means that the consumers will require more information on these products so they can make a reasonable choice on their behalf in determining which food products to purchase. Since the consumers don’t know the correct definition of the term “natural”, they choose simply based on the image from the term “natural.” When people see “natural” on food products, they automatically assume it is strictly made without genetic engineering. However, the image “natural” is falsely interpreted by the majority of consumers in the market. In December 2015, the Consumer Reports National Research Center conducted a survey of a nationally representative sample of 1,005 adults to get their take on natural food labeling. The results show...
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...me in consumers in educating about the guidelines of food products that are “natural”. If the consumers are more educated on this term, then the food product manufacturers can use that as a benefit and make adjustments to fulfill the public interest. The result will allow a smooth transition between both sides of the FDA and the citizens.
The market failure of the FDA in either getting rid of the term “natural” or redefining it is primarily due to information failure that is given to the consumers. For the consumer to make a rational decision on consumptions, they need to first be educated and informed about what “natural” really means. The FDA and Food Manufacturers need to specify exactly what substances go into these products when serving to the consumers. These steps will allow consumers to meet their satisfaction and cause the market to succeed without failure.
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