The Cost-Benefit Revolution by Cass R. Sunstein

Author:Cass R. Sunstein [Sunstein, Cass R.]
Language: eng
Format: epub, pdf
Published: 2018-09-13T00:00:00+00:00

“Does Not Contain” Labels vs. “Contains” Labels

There are important differences between a system in which a product without some characteristic has a label stating it “does not contain x” and one in which a product with some characteristic has a label stating that it “contains x.” As we have seen, “contains x” offers far more salient information to consumers with bounded attention. In addition, “contains x” might have a distinctive signal, suggesting that private and public institutions think that something is wrong with x. “Does not contain x” might also promote a desirable form of sorting. Suppose that 10 percent of the population is troubled by x, whereas 90 percent is not; suppose also that both groups are informed and rational. If so, there is no need for “contains x.” Those who want to avoid x can easily do so, and those who have no interest in avoiding x need not be troubled by the issue.

On a certain view of the facts, “does not contain x” is the right approach both to gluten-free and to GM food. People who are allergic to gluten should know what to look for. The principal problem is that if they are inattentive, they might become sick simply by virtue of the fact that the issue has not been brought to their attention. (Compare labels saying “contains peanuts” or “contains shellfish,” which may be especially important if consumers are inattentive or if it is not self-evident that the relevant food contains either.) With “does not contain” labels, consumers can easily avoid GM food if that is what they want to do. But this approach is not a solution if GM food has harmful systemic effects or threatens to cause environmental harm (or if relevant interest groups want to stigmatize GM food).

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