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High cost of new regulation at grocery stores

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  • Description

    How will nutritional mandate impact customers?

  • Duration 2:07
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Tonight's regulation nations story as a real world illustration of the old saying give them an inch and I'll take a mile.

It again as a way to provide nutritional information for restaurant customers but correspondent Shannon -- tells us that isn't stopping there.

Mostly in the restaurant industry were on board with requirements stemming from the new health care law requiring them to provide nutritional information on their -- But when the Food and Drug Administration decided to extend that -- many supermarkets and convenience stores in the form of the new federal regulation.

Store owners were alarmed they were -- very burdensome under this proposed regulation thousands of stores would be forced to label on packaged foods like those found in a salad bar.

Hot foods soups and your favorite bakery items.

The Food Marketing Institute estimates the regulation would cost retailers -- billion dollars in just the first year.

The supermarket industry is is a business that's well known that our net profit -- average and has been forever is 1%.

So when you incur significant cost there's no way that that doesn't get passed -- to the customer in some form.

And there are some stiff penalties if you get it wrong get this it's a federal crime and you could face jail time.

And thousands of dollars worth of fines the FDA says quote the information should help consumers limits access calorie intake.

And understand how the foods that they purchase at these establishments fit within their daily caloric and other nutritional needs.

Critics of the proposed regulations say the FDA failed to complete a cost benefit analysis -- -- the regulation in order to justify its necessity.

They're required to do it and they didn't.

They simply said we can't quantify a benefit from this role and that's because they really can't.

The FDA says it has received hundreds of public comments on the proposed regulation and will consider them before issuing a final roll.

Which the agency says will include that economic analysis Chris Shannon thank you.

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