Economic Perspectives on the Dissemination of Science-Based Information to Consumers

Abstract

The role of producers in disseminating information about biotechnology to consumers has been debated in policy circles. Prior to 1984 the U.S. prohibited firms from discussing any scientific relationships between diet and health in food advertising and labeling. The U.S. government changed its policy regarding health claims in advertising and labeling and after 1984 producer claims added to the flow of information linking diet and disease. This paper reviews the research Pauline Ippolito and the present author have published analysing the impact of this change in policy. Using a variety of U.S. data, the evidence shows that there were marked improvements in consumer knowledge of diet-disease relationships, healthier new food product introductions, and significant improvements in the composition of the typical U.S. diet during the 1985–1990 period. The benefit of producer diet-disease claim in changing knowledge and behavior provides a potentially important example as the Canadian government contemplates regulations governing the flow of biotechnology information to consumers. A review of the institutions that regulate advertising regulation is included as well as a discussion of their ability to deter false and deceptive advertising.

Alan D. Mathios is Associate Professor, Department of Policy Analysis and Management, Cornell University, 120E MVR Hall, Ithaca, NY, 14853, USA. E-mail: adm5@comell.edu. Some parts of this article are taken directly from Ippolito and Mathios (1989, 1990a, 1990b, 1991, 1993, 1994, 1996) and Mathios and Plummer (1988).