In Wal-Mart We Trust - Will the World’s Largest Retailer Curb Misleading Labels?
Tuesday, June 6th, 2006Milk is Milk Blog by Alex Avery
Wal-Mart has been in the news a lot lately. It seems as though the high-volume low-price retailer has “decided that offering more organic food will help modernize its image and broaden its appeal to urban and other upscale consumers.”
The marketing hacks over at Hartman Group have been taking credit for advising Wal-Mart on this move. I’ll never forget Peter Hartman’s ominous quote: “Perhaps it’s time to give our science a much-needed breather and meditate on what it really means to live and eat together, as humans - in sync not with the regression outputs of biostatisticians but with rhythms and rituals of social life.” That darn science is so darn troublesome. (Unless it is junk science that supports scaring consumers into buying more expensive dairy products).
The Organic Consumers Association, which isn’t just anti-science, but apparently just outright anti-capitalist, has complained that the move will be bad for organics, and in perfect Chicken Little fashion, predicted that Wal-Mart would soon be sourcing its food from China. Frequent readers of this blog know that nothing aggravates us so much as this anti-science fear-profiteering (PDF). So we are reaching out to Wal-Mart’s CEO, requesting that he prohibit misleading labeling in his stores.
Dear Mr. Scott:
Recently there have been many articles reporting on Wal-Mart’s Stores, Inc.’s decision to increase its organic food offerings. While several non-profit groups have gone on the record either praising or criticizing the merits of this decision from a marketing standpoint, I am writing on behalf of the coalition comprised of the organizations listed above to urge Wal-Mart to take corresponding measures that would ensure consumer protection from potentially false and/or misleading marketing and labeling linked to many organic products. As federal and state laws require that all foods be labeled and marketed in such a manner as to be truthful and non-misleading in all particulars we hope that you would adopt procedures to ensure Wal-Mart’s diligence and compliance in this area.
As we trust you know, organic food is neither more nutritious nor any safer than conventionally produced food. While organic food production may enlist farming methods that conform to personal philosophies of certain consumers, the fact that organic foods do not become healthier or more nutritious from these farming methods bears repeating. The United States Department of Agriculture (which created the “USDA Organic” label as a marketing distinction) notes on its Web page: “USDA makes no claims that organically produced food is safer or more nutritious than conventionally produced food. Organic food differs from conventionally produced food in the way it is grown, handled, and processed.”
Unfortunately certain marketing interests have convinced some consumers to buy higher-priced organic foods as a way to safeguard their families from such “dangerous” things as pesticides, antibiotics, hormones, etc. In short, these marketing claims that are made by consultants, non-profit front groups and even by some products’ labels, directly conflict with the USDA’s acknowledgement that organic foods are no “safer or more nutritious” than conventionally produced food. They also conflict with sound science that has been peer-reviewed and universally accepted.
Reports from the Hartman Group that they are helping to launch Wal-Mart’s organic offerings has added to our level of concern. Hartman’s recent marketing communications include troubling statements conveying the message that retailers should continue to allow consumers to perceive that organic is safer and healthier, and in fact, openly suggests that perception can contribute favorably to the bottom line. The Hartman Group has also been quoted in recent mainstream media stories touting that low-income mothers will often spend twice as much on an organic product. Such boasts are irresponsible at best and shameful at worst.
The foods that consumers have been told to fear — fruits, vegetables and dairy products — are among the most nutritious that low-income parents can buy for their families. Through this “fear profiteering,” consumers are coaxed into spending more of their hard-earned food budget on items they mistakenly conclude are healthier for their family. This leaves less money to buy other food and life essentials for people struggling with limited budgets and incomes.
The Hartman Group’s marketing strategy de-emphasizes value, increases prices, and stands in striking contrast to Wal-Mart’s philosophy of low prices and quality products. This approach also defrauds vulnerable consumers into paying more money for products based on false beliefs perpetuated by misleading labels and marketing - something which would clearly violate Wal-Mart’s stated company values of “good quality products” at the “lowest possible price” and Wal-Mart’s global ethical principle of “being honest and fair.”
The case of “absence claims” in organic dairy labeling is a good example. False and misleading information on some organic dairy product labels create the mistaken impression that these dairy products are somehow different from other milk products or that these cows are healthier than other cows, and that the product is “nutritionally better” or safer for the consumer than other milk. Further, these statements incorrectly imply that other competing non-organic dairy products have had something added — the implication is usually pesticides, antibiotics or hormones — when in fact all milk has hormones, and literally every drop of milk is tested to be free of antibiotics. While minute amounts of pesticides are sometimes measured in dairy products - including organic dairy products - no dairy producer adds pesticides to milk and all milk is tested for safety before being shipped for commercial sale. As such, these absence claims violate the Federal Food, Drug and Cosmetic Act and the guidelines issued by FDA with respect to the labeling of milk products.
The Stop Labeling Lies Coalition has been one of the watchdog groups seeking simple compliance of existing rules and regulations from food processors and retailers alike. We currently have complaints filed on the federal and state levels and we have received some encouraging responses so far (please see: http://www.stoplabelinglies.com/complaints/complaints.html) from numerous regulatory bodies. We also have published a “gallery” of several brands of dairy and other products which violate these FDA guidelines (please see: http://www.stoplabelinglies.com/gallery/gallery.html).
Wal-Mart Stores, Inc. has a tremendous opportunity to play an important role directing industry to comply with truthful, non-misleading marketing consumer protections while offering consumers diverse choices of conventional and organic products. As a company, Wal-Mart has an historical reputation for providing value to its consumers and respecting their financial interests. As an example, your decision to increase offerings of organic products reflects an acknowledgement of an apparent consumer trend. We trust that Wal-Mart will be able to cater to this trend while abstaining from selling organic foods that mislead consumers through labels containing false or misleading “absence claims” or any other suggestion that they are “healthier” or “safer” than their conventional counterparts.
We are confident that, by refusing to sell organic foods that suggest without any evidence whatsoever that they are healthier than conventionally-produced food, Wal-Mart would acknowledge a USDA-endorsed and FDA-prescribed precedent and be able to influence organic food companies to label their products responsibly and legally. We would be happy to provide you with the names of products, some of which are currently available in Wal-Mart stores according to store checks conducted by our coalition volunteers, which label or market their products with claims that violate these standards.
We would greatly appreciate a response, stating Wal-Mart’s position and marketing plans with respect to this important consumer issue. Thank you in advance for your reply and we are grateful for your time. For more information on this topic, please visit the Center for Global Food Issues’ informative Web site, http://www.milkismilk.com/ as well as http://www.stoplabelinglies.com/.
Sincerely, Alex Avery For the Stop Labeling Lies Coalition www.StopLabelingLies.com
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