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The Food Safety and Inspection Service (FSIS) is amending its regulations to define the conditions under which the labeling of meat, poultry, and egg products, as well as voluntarily-inspected products, can bear voluntary statements indicating that the product is of United States (U.S.) origin.

Statement of Need:

FSIS conducted a comprehensive review of the Agency’s current voluntary Product of USA labeling policy to help determine what the Product of USA label claim means to consumers of FSIS-regulated products in the U.S.  marketplace. FSIS started this review after receiving several petitions stating that the voluntary label claim Product of USA is confusing to consumers. FSIS’ review of the policy included a consumer survey on Product of USA labeling on beef and pork products. Based on the consumer survey results, reviews of consumer research, and comments received on the petitions, FSIS is revising its regulations to reduce consumer confusion surrounding current voluntary U.S.-origin labeling policy.  

Summary of the Legal Basis:

Under the Federal Meat Inspection Act (FMIA)(21 U.S.C. 601-695, at 607), the Poultry Products Inspection Act (PPIA) (21 U.S.C. 451-470, at 457), and the Egg Products Inspection Act (21 U.S.C. 1031-1056, at 1036), the labels of meat, poultry, and egg products must be approved by the Secretary of Agriculture, who has delegated this authority to FSIS, before these products can enter commerce. FSIS also provides voluntary reimbursable inspection services, including label approval, under the Agricultural Marketing Act (AMA) (7 U.S.C. 1622 and 1624) for eligible products not requiring mandatory inspection under the FMIA, PPIA, and EPIA. Under the mandates of the FMIA, PPIA, and EPIA, any meat, poultry, or egg product is misbranded if its labeling is false or misleading in any particular (21 U.S.C. 601(n)(1); 21 U.S.C. 453(h)(1); 21 U.S.C. 1036(b)). FSIS has similar authority under the AMA concerning labels of products receiving voluntary inspection services (7 U.S.C. 1622(h)(1)).

Alternatives:

In addition to the option proposed, the Agency considered the following alternatives: 1) Keeping the current regulatory requirements for U.S.-origin product labeling and taking no proposed regulatory action; and 2). Taking the proposed regulatory action but extending the compliance period for the regulatory changes after publication of the final rule.

Anticipated Costs and Benefits:

Establishments may incur costs associated with voluntarily changing their labels as a result of any revised regulatory requirements. The finale rule is expected to result in quantified industry relabeling, recordkeeping, and market testing costs, which combined are estimated to cost approximately $3 million, annualized at a 7 percent discount rate over 10 years. The changes will benefit consumers by matching the voluntary Product of USA and Made in the USA label claims with the definition that consumers’ likely expected, i.e., as product being derived from animals born, raised, slaughtered, and processed in the United States. The final rule will reduce false or misleading U.S. origin labeling and will reduce the market failures associated with incorrect and imperfect information. 

Risks:

N/A