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FMI urges FDA to revise food traceability and labeling rules to reduce burdens, avoid cost hikes

“FMI strongly supports the work of HHS and FDA to identify and eliminate outdated or unnecessary regulations.”

ARLINGTON, Va. — FMI, The Food Industry Association, is calling on federal regulators to revise two major food policy proposals — the FDA’s Food Traceability Rule and its draft regulation on front-of-package nutrition labeling — warning that the current rules could raise operational costs and confuse consumers without improving food safety or public health.

In formal comments submitted to the U.S. Department of Health and Human Services (HHS) and the Food and Drug Administration (FDA), FMI voiced support for the agencies’ broader goal of streamlining federal regulations as outlined in their recent Request for Information titled Ensuring Lawful Regulation and Unleashing Innovation To Make America Healthy Again.

“FMI strongly supports the work of HHS and FDA to identify and eliminate outdated or unnecessary regulations,” said Jennifer Hatcher, FMI’s Chief Public Policy Officer. “Deregulatory efforts will make it easier for the food industry to operate while at the same time ensure that food retailers, wholesalers and product suppliers are able to keep food costs as low as possible for consumers — a goal that both the Trump administration and the food industry support and prioritize.”

Complexity and Compliance Concerns

The Food Traceability Rule — aimed at improving transparency and accountability in the food supply chain — remains one of the most burdensome regulations the industry has ever encountered, according to FMI. While the FDA recently extended the compliance deadline by 30 months, FMI is urging the agency to go further by modifying the rule itself.

Among FMI’s recommended changes are added flexibilities for lot code tracking and exemptions for intracompany shipments — internal transfers between facilities owned by the same company. These adjustments, FMI argues, would allow companies to comply more effectively without compromising the FDA’s ability to gather data for food safety purposes.

Labeling Rule Risks Confusing Shoppers

FMI also raised red flags about the FDA’s proposed front-of-package (FOP) labeling rule, which aims to simplify nutrition guidance for consumers by adding visual cues to product packaging. The association warns that the current proposal is “oversimplified” and could inadvertently lead to consumer confusion.

“The rule as written would also require a complete redesign of most packaged foods, imposing significant costs on American manufacturers and retailers without a proven added benefit to public health,” Hatcher said.

FMI pointed to the existing Facts Up Front voluntary labeling system — created in collaboration with FDA more than a decade ago — as a viable, cost-effective alternative that already meets the agency’s stated goals.

Shared Goal: Food Access and Affordability

FMI’s recommendations come at a time when affordability remains top of mind for both consumers and the food industry. The association emphasized that a careful balance must be struck between regulatory ambition and real-world impact — particularly in an inflationary environment where operational costs inevitably affect shelf prices.

“Adopting reasonable revisions to these issues will improve food safety and access to nutrition information without unnecessarily increasing food costs for consumers,” said Hatcher. “We stand ready to assist HHS and FDA in working toward improvements that benefit all Americans.”

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