Inaccurate Food Labels: What’s The Penalty?

Inaccurate food labels can cost a business $10M. Let us help you build a labeling system to avoid these losses.

If there is one thing food manufacturers dread is the process of recalling products due to a labeling or manufacturing defect. They have to spend a lot of resources trying to identify and complete the recall cycle. This not only uses a lot of cash and manpower but, the company has to work fast to ensure the company’s reputation is not tarnished permanently.

According to a joint study by the Food Marketing Institute and the Consumer Brand Association, the average cost of a recall to a food company is $10M, plus reputation and brand damage.

Unlike other product labels, food producers need to be extremely careful when designing food labels to avoid mistakes that can lead to disastrous health-related consequences.

We have listed a number of common consequences that can occur from food labeling errors. Don’t let these happen to you.

We can help you with a better labeling system to reduce errors and recalls. Contact us today to get started. Call us at 888.972.5234 or email [email protected]

Related: How Do Mistakes in Food Labeling Happen?

Common Consequences of Inaccurate Food Labels

Regulatory Fines

The FDA requires all food labels to pass regulation tests before they are released for sale. This ensures that the ingredients stated on the food labels match those in the packaging and that all information is accurate.  The FDA has the right to hold the products from being released if they find inconsistencies in the labeling. This usually comes with a fine for not meeting the required standards.

Loss of Business

Multiple food label issues will result in customer fines or delayed shipments. A company can end up delivering the wrong order to a customer if food products are labeled incorrectly for shipment. Not only is this extremely inconvenient, but the customer may also lose faith in the supplier and look elsewhere for a more reliable company.  When this happens, a company will lose a part of its market share to its competitors AND lose brand credibility. It will be harder to convince customers to buy from them again.


FDA regulations require food labels to provide nutritional information so consumers can make healthy choices. If a food label is inaccurate it can lead to serious health complications. For example, if a food label omits peanuts as an ingredient on the label, consumers allergic to peanuts can experience health complications and even death. Mistakes like these can lead to serious litigation. A company can end up using a significant amount of resources, time, and money fighting legal issues in court.

How can we help you avoid these issues?

We can help you with a better labeling system to reduce errors and recalls. Get started today. Call us at 888.972.5234 or email [email protected]


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About PaladinID, LLC
PaladinID develops and supports high-performance bar code labeling applications. We work with our clients to “Make Your Mark” by providing the expertise and tools necessary to create an entire product label printing solution. Located in central New Hampshire, PaladinID has been serving Massachusetts, Vermont, Maine, Connecticut, Rhode Island, New England, and beyond for over 30 years, and in 2017, became an RFID-certified company. We look forward to working with you.

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