Food labeling regulations and voluntary certification programs provide consumers with information to make welfare-conscious choices, though the effectiveness of labels varies enormously.
Consumer purchasing power can drive welfare improvements when consumers have accurate information to make welfare-conscious choices. However, the patchwork of regulatory definitions, voluntary certifications, and misleading marketing terms creates an environment where consumers cannot reliably use labels to make welfare-improving choices. Mandatory, standardized welfare labeling with independent verification would create genuine price signals for welfare and allow market forces to drive improvement. Without such transparency, many consumers who want to choose higher welfare products cannot effectively do so.