Inaccurate Food Labels: What’s The Penalty?

What could one inaccurate food label cost your business?

A widely cited industry study by the Food Marketing Institute (FMI) and Grocery Manufacturers Association (GMA) estimated that the average food recall costs a company approximately $10 million in direct costs, before considering additional damage to sales, reputation, and brand trust.

For food manufacturers, one of the most difficult situations is having to recall a product because of a labeling or manufacturing error. A recall can require significant time, money, and manpower to identify affected products, remove them from the supply chain, and complete the recall process quickly and accurately.

Food labeling errors can be especially serious because labels provide consumers with important information about ingredients, nutrition, allergens, and other product details. FDA requirements govern food labeling, and accurate ingredient and nutrition information is an important part of compliant food packaging.

That is why having a reliable food labeling system is so important.

Related: How Do Mistakes in Food Labeling Happen?

Common Consequences of Inaccurate Food Labels

Labeling mistakes can create problems far beyond a simple printing error. Here are some of the most common consequences food manufacturers should work to prevent.

Regulatory Fines and Compliance Issues

Food manufacturers must meet applicable FDA food-labeling requirements before products are distributed. Requirements can include accurate ingredient lists, nutrition information, allergen declarations, and other required labeling information.

When labeling information is inaccurate or does not meet applicable requirements, a company can face regulatory action, product holds, recalls, and other costly disruptions.

Accurate food product labels and a reliable printing and verification process can help businesses reduce the risk of costly labeling mistakes.

Loss of Business and Customer Trust

Incorrect food labels can also affect your customers and supply chain.

A mislabeled product may result in shipping errors, delayed orders, rejected shipments, or customers receiving the wrong product. These problems can damage relationships with customers and distributors.

Repeated labeling issues can ultimately result in lost business and reduced confidence in your brand. Customers want suppliers they can rely on for accurate products and documentation.

Litigation and Health Risks

Some food labeling mistakes can have serious health consequences.

Food labels provide consumers with important information that can affect their purchasing and consumption decisions. For example, failing to accurately identify an allergen such as peanuts could expose an allergic consumer to a serious health risk.

Errors involving allergens, ingredients, or nutritional information can therefore lead to legal claims, costly litigation, and significant damage to a company’s reputation.

How Can a Better Food Labeling System Help?

A reliable food labeling and printing system can help reduce the opportunity for errors before products leave your facility.

The goal is not simply to print a label. Your labeling process should help ensure that the right information is printed on the right product at the right time.

A well-designed system can help improve:

• Labeling accuracy
• Product identification
• Barcode and variable-data printing
• Order and shipment accuracy
• Production efficiency
• Traceability

The right combination of labels, printers, software, and processes can make your operation more consistent and easier to manage.

At PaladinID, we help businesses evaluate their existing labeling processes and identify opportunities to improve accuracy and efficiency.

Let PaladinID Help You Reduce Labeling Errors

Food labeling doesn’t have to be a source of unnecessary risk.

Whether you need custom food labels, barcode labels, label printers, labeling software, or help improving your current labeling workflow, PaladinID can help you develop a solution designed around your operation.

Our team can take a closer look at your labeling process, equipment, and requirements to help you find a more reliable approach.

Start Improving Your Food Labeling Process

Don’t wait until a labeling error becomes an expensive problem.

Call PaladinID at 888.972.5234 or email [email protected] to discuss your food labeling requirements.

Accurate Labels. Better Processes. Fewer Problems.

Let PaladinID help you build a food labeling solution that supports accuracy, efficiency, and confidence throughout your operation.

PaladinID — Make Your Mark.