New regulations at your supermarket
What will impact on businesses be?
- Duration 3:52
- Date Jan 27, 2013
What will impact on businesses be?
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In the last ninety days the federal government has posted 5557.
Propose new regulations on its web -- regulation -- up.
What now under consideration could mean higher prices for you at the grocery store or that some of your favorite foods could disappear from the stores altogether.
Tell us what this is all about Derrek Lee government regulatory counsel for the Food Marketing Institute Eric preceded -- -- the company to be -- -- thanks for having -- this -- think federal regulation in proposed stage right now that stems from the health -- -- and basically says that supermarkets are going to have to label all kinds of foods.
-- -- in big trouble if they don't we'll get to that but basically it's something that's on package you have we have apple pie here.
If it's from a bakery your favorite cupcakes at -- a local bakery this salad and food bars hot -- that are out there.
Basically you got a label everything or what happened.
If you don't label it supermarkets face thousands of dollars worth of fines and executives supermarkets could be putting federal jails.
-- you go to jail if you don't label the foods correctly under -- thank -- federal regulation that's absolutely right.
And this is a sweeping regulation that affects thousands of items in the supermarket.
Because of this we could see a number of items going away and I can guarantee you that shoppers are going to see higher prices at the register.
So how does this work essentially ending this is something that stems from -- -- up on my understanding is this comes to the food and drug administration.
On which has admitted it.
That this didn't necessarily extended supermarkets and grocery -- but they've decided they're going to.
That's absolutely right agencies acknowledge that congress did not direct them to regulate supermarkets.
But they decided to go ahead and regulate our industry anyway they said you know what we understand that this law does not directors to regulate supermarkets.
We're going to go ahead and impose a billion dollar burden on the industry anyway and they haven't justified any reason for doing it.
They haven't justified -- singled pennies worth of benefit arising from this regulation.
Now I was under the administration are under the impression that at least with some federal regulations you do have to do a cost benefit analysis to explain.
How the benefit will offset what you're asking the company to do.
That's absolutely right agencies are required to do this.
And the White House is supposed to make sure that.
All regulations have benefits that are maximized and burdens that are minimized in this instance the Food and Drug Administration didn't bother quantify a single benefit from the rule.
And we believe that's because they can't there's not a single study out there which shows that regulations.
That there's not a single study out there.
Which shows that.
Labeling reduces obesity rates.
OK so why would this cost you haven't asked now what this -- cost the industry to make sure that -- in compliance.
Well we've estimated that it would be -- billion dollars with the burden in the first year -- And then from there on -- I mean this is something he have to give all of my understanding is.
The -- how do you calculate this you have to send every food -- in to get.
Chemical analysis do you can you do.
You know that the -- They are on site at the store and who doesn't he have to hire more people to do it.
Well this is a huge burden.
Before we -- and -- like this apple pie we have to -- to tell laboratory for analysis we have to compile eight different records on the item we have to put that sign up there which has 3000 calories.
Thirty Korean -- I idea.
Don't really think that's useful information consumers.
But we have to invest a lot of money to do this and this is money that we're not investing in creating jobs or developing our stores and -- savings that we can't pass on to consumers.
All right and if you don't get it right someone's going to jail.
Our air Lieberman thank you very much of a very nice opening will I keep the tracking this let us -- -- what becomes of this regulation and how without.
We appreciated but I know that I can make it out of here in the studio -- think again.