Jan Gee: Independent grocers need flexibility in labeling

The supermarket industry has always been a fiercely competitive marketplace. But despite the razor-thin margins, retailers are proud to be an important partner in their communities. In addition to providing food to families, grocers are employers in their communities and contributors to the local economy.

Over the past seven years, however, an onerous, 400-page menu-labeling regulation originally designed for chain restaurants threatened to impact grocers’ day-to-day operations and their ability to serve customers with customized and local items. This burdensome regulation was set to go into effect on May 5 of this year but was recently delayed largely thanks to the efforts of Rep. Cathy McMorris Rodgers.

This menu-labeling regulation came about from the Affordable Care Act, in which chain restaurants with 20 or more outlets are required to list caloric information on menus and menu boards. The law was intended to provide a uniform standard for chain restaurants to comply with various state and local menu-labeling laws, none of which had previously regulated grocery stores. However, in late 2014, the Food and Drug Administration released a final rule where the words “similar retail food establishments” were used to capture grocery stores within the regulation.

Many independent grocers operate their supermarkets like neighborhood stores, regardless of whether they operate one location or 20. The offerings in their delis and salad bars will often differ from one location to the next based on the preferences of the local community and what’s in season from the farmer down the road. However, under this rule, any unique item sold at just one store would still require caloric testing and signage for that one store. This would not only create added costs but would be a significant disadvantage for grocers providing unique or specialty local items in their stores.

Even more troublesome, FDA’s menu-labeling regulation could expose store employees to potential criminal charges for simple human errors under the Food, Drug and Cosmetic Act. As the law is currently written, even the smallest failure to comply with the menu-labeling rule, even just adding an extra slice of pepperoni to a pizza, can carry civil and criminal penalties of up to a $1,000 fine, and/or the possibility of jail time.

To be clear, we’re not looking for an exemption from the law. We just need a way to comply that works for supermarkets, not just chain restaurants. We need some flexibility so we can give shoppers the calorie information they want without breaking the bank. In fact, the rule would have cost the supermarket industry nearly $1 billion to comply – one of the most expensive for our industry ever.

The Common Sense Nutrition Disclosure Act (H.R. 772) – legislation introduced by Rep. McMorris Rodgers – would help supermarkets comply through commonsense reforms to the rule, such as allowing grocery stores to use one centralized board and ensuring that businesses acting in good faith will not be punished for inadvertent human errors.

Independent grocers have invested about 2,770 stable jobs, paid nearly $123 million in wages and more than $723 million in local, state and federal taxes. This legislation would allow us to continue to be a vital part of communities across the state.