The Food and Drug Administration (FDA or we) is extending the compliance dates by approximately 1.5 years for provisions in the Nutrition Facts Label Final Rule (81 FR 33742) and the Serving Size Final Rule (81 FR 34000). FDA is extending the compliance dates in response to the receipt of information demonstrating that extending the compliance dates would help provide for adequate time to fully implement the provisions of the Nutrition Facts Label and Serving Size Final Rules. Because the compliance dates will be extended by approximately 1.5 years, the discounted value of the estimated costs and benefits of the Nutrition Facts Label and Serving Size Final Rules will be reduced. This final rule to extend the compliance dates would reduce the costs to food manufacturers. We estimate that, at the mean, the present value of the cost savings (i.e., benefits) to industry of this final rule over the next 20 years is $1.0 billion using a 3 percent discount rate and $1.0 billion using a 7 percent discount rate (2016$). The foregone benefits to consumers is the principal “cost” of this final rule. We acknowledged in the Regulatory Impact Analysis for the Final Rules that there were potential shortcomings related to our estimates of the Rules’ benefits, but public comments have not offered any additional data or information to improve the estimation of benefits. Thus, for purposes of this Final Regulatory Impact Analysis, we will continue to use the benefit estimates from the Final Rules. We estimate that, at the mean, the present value of the foregone benefits to consumers of this final rule over the next 20 years is $0.9 billion using a 3 percent discount rate and $0.9 billion using a 7 percent discount rate (2016$). We estimate that, at the mean, the present value of the net benefits (cost savings minus foregone benefits) of this final rule over the next 20 years is $0.1 billion using a 3 percent discount rate and $0.1 billion using a 7 percent discount rate (2016$).

Regulatory Impact Analysis

Food Labeling: Revision of the Nutrition and Supplement Facts Labels and Serving Sizes of Foods That Can Reasonably Be Consumed at One Eating Occasion; Dual-Column Labeling; Updating, Modifying, and Establishing Certain Reference Amounts Customarily Consumed; Serving Size for Breath Mints; and Technical Amendments; Extension of Compliance Dates (Final Rule) RIA (PDF - 207 KB)

Docket: FDA-2012-N-1210 and FDA-2004-N-0258

Federal Register: Vol. 83, No. 87, Friday, May 4, 2018, pp. 19,619 - 19,626