Mislabeling can be costly for businesses. It can result in recalls, lost sales, decreased customer loyalty, and legal liability.
Mislabeling refers to any inaccurate labeling of products, from ingredients to omitting critical information that will influence consumers’ purchase decisions.
The root cause(s) could be one or more of the following,
- Human error
- Faulty labeling equipment
- Deliberate deception
The Truths About Mislabeling
In 2019, the U.S. Food and Drug Administration (FDA) issued over 170 recalls due to mislabeling or undeclared allergens in food products. This highlights the significant impact mislabeling can have on public health and safety.
Separately, according to a study by the Grocery Manufacturers Association, a company’s average food recall cost is $10 million in direct costs and more from brand image and lost sales. Mislabeling is a common reason for food recalls.
Furthermore, a survey conducted by Nielsen found that 81% of consumers consider the accuracy of product labels important when making purchasing decisions. If consumers discover mislabeled products, they may lose trust in the company and turn to competitors.
Mislabeling can lead to a costly recall involving replacing the product, refunding customers, and any associated legal fees.
There are also costs to fix the problem, which usually involve strengthening a workflow to
- Ensure all labeling is accurate and complies with relevant regulations
- Improve communication between departments
- Be transparent with customers about labeling issues.
Finally, mislabeling can also be dangerous, as inaccurate labeling can lead consumers to believe they are taking more or less of a substance than they are. For instance, in 2019, the FDA issued warning letters to several companies for mislabeling cannabidiol (CBD) products. Mislabeling CBD products can be dangerous, as inaccurate labeling can lead consumers to believe they are taking more or less CBD than they are.
Managing Mislabeling: Stay In Control with In-house Label Printing
Printing in-house can also help to reduce the risk of mislabeling.
Investing in your label printer lets you control the labeling process and ensure labels are printed accurately on demand.
In-house printing can also reduce lead times and eliminate the need for pre-printed labels, which can be a source of errors if not appropriately managed. Furthermore, in-house printing can improve department communication, facilitating better coordination between the production and labeling teams.
Besides reducing the risk of mislabeling, printing labels in-house can
- Reduce costs over outsourcing
- Reduce waste and excess inventory
- Customize labels to meet specific customer needs
- Differentiate your products from competitors and improve brand recognition.
Getting started with a digital labeling workflow is simple. It boils down to selecting the right printing solution.
We will gladly guide you on the best choice of printer for your application. Start by scheduling a product demo today.