Better Labels, Better Choices

I was in the store recently and found myself in a bit of a frenzy. Now for the record, shopping is usually an enjoyable, if not downright relaxing experience for me. So for me to get stressed out was a big deal. Here’s what happened:

I’ve been thinking a lot about how we as consumers can effect change in The Social Age. I like the idea of “voting with my wallet” and am encouraged that more and more people actually care about how the products they use are sourced, manufactured, used and disposed of. And so I gave myself and assignment: “Know what you are buying”.

It wasn’t as easy at it seemed — and hence the slight frenzy I felt at my local Shaw’s Market. The problem: I didn’t know what I was buying. In fact, how do any of us know what we are buying? Take organic food as a readily accessible example.

According to my research, there are three defined levels of organics in the US (exemplified in the cereal box examples below):

  • Products made entirely with certified organic ingredients and methods can be labeled “100% organic” and use the USDA Organic seal.
  • Products with 95% organic ingredients can use the word “organic” and can use the USDA Organic seal.
  • Products containing a minimum of 70% organic ingredients, can be labeled “made with organic ingredients” and display the logo of the certification body that approved them. They may not use the USDA Organic seal.

Image from the Agricultural Marketing Service. Note: Products made with less than 70% organic ingredients can not advertise this information to consumers and can only mention this fact in the product’s ingredient statement. Additional Note: for more on the certification process, see the very long National Organic Program Standards.

OK, so if you imagine that I am a Rhodes Scholar in shopping prowess (in fact I may be) and even I didn’t know the different levels of organic-ism, how the heck is anyone supposed to decide anything? It turns out that the organic certification process is actually pretty complete, taking into account how foods are grown, how soil is watered, sewage is treated, how animals are fed as well as levying an $11,000 fine for intentionally mis-labeling a product.

But organic labels only work for food. What about my laundry detergent, cell phone, diet coke, pillow, TV, and all my other “essentials”? It turns out that getting to the heart of the matter isn’t that easy. The problem: there is no single labeling system that allows consumers to assess one product versus another — especially in regard to the more “social” components of assessment such as child labor standards, product sourcing, corporate responsibility and post-use disposal.

According to Nathan Shedroff, founder of Reveal.org, there is no system by which consumers can evaluate a product based on its environmental as well as social performance.

Sure, if I want to buy a handmade rug from South Asia, I can look for the
Rugmark seal which will ensure me that the rug was made without harm to children. But this label doesn’t tell me if the rug mills were toxic to local water sources or how the company protects the human rights of all workers.

Similarly, if I want to buy an energy-saving refrigerator, I can look for the
Energy Star label found in the US but this label tells me no information beyond energy consumption ratings, particularly in regard to manufacturing sourcing, production and disposal. In fact, I’m sure there’s an old refrigerator graveyard out there somewhere.

So what’s a consumer to do? I don’t have any easy answer. In fact the issue gets even more complicated when you begin looking at it from a global perspective. It turns out, some claim, that social labeling isn’t good for everyone. In October of 2005, a proposal was made at the World Trade Organization to outlaw social labeling as it was seen as damaging to competitiveness and a barrier to trade (see article). It seems that Korea, China and the US believe that things like the “recyclable triangle”, dolphin-friendly tuna, food safety testing and sustainable sourcing markings are preventing them from the free-flowing consumer dominance they want to enjoy. Far be it for them to let the consumers decide for themselves. (Unfortunately, I have yet to find follow-up from the proposal so if anyone has any information, please share it with me).

In the meanwhile, there’s not a whole lot that we, as individuals can do. It is up to each
of us as consumers to educate ourselves as to how the products we use are making the world a better, or worse, place. Perhaps one thing we can do is support Shedroff’s
pursuit of funding for his fledgling non-profit, with the hopes that those efforts will make decision-making easier for all of us. Unlike the single-parameter seals mentioned previously, Reveal looks to combine a spectrum of valuable information into one easy-to-understand label including factors such as corporate responsibility as well as production, use and disposal parameters. It is an ambitious undertaking, but one that I’m sure will make the world a better place. If you want more information contact Nathan Shedroff at info at revealinfo dot org.

As I’ve discussed before, The Social Age is predicated on two things: curiosity and awareness. As we
become more aware of the challenges facing the world around us, we need to become more curious as to how to solve those problems. In a world where the pollutants I dump in the air here effect breathers of the air there, in a world where the shoes I wear here might have hurt a young child there, in a world where
the handbag I carry here may cause an animal extinction there, you begin to realize that we are all in
this together. And it’s time for a change.

So I have a feeling that shopping isn’t going to be quite as much fun for me for a while. Once I became more conscious of the impact of the choices I am making, I realized there is no going back. So much for spending a rainy Saturday at the mall.

RSS Feed for This Post4 Comment(s)

  1. Did you know about the group from the KSG (Kennedy School of Government) social entrepreneurship class that worked on this problem? They also want to fix the labeling problem that you describe here. Nice post!

    Comment by Ryan Buckley -- Jun 13, 2007 @ 12:01 am

  2. No, but I’d love to learn more about it. Can you make an introduction offline? Thanks Ryan.

    Susanne

    Comment by Susanne Goldstein -- Jun 13, 2007 @ 7:28 am

  3. There’s a guy at berkeley who has software that works on your phone to scan barcodes and tap into 17 different datases and come up with either a red frowny face or a green smiley face (and you can drill down to get more). he’s also working with a behavioral economics lab to figure out what people, other than true social age converts like you and me) respond to. His early results say that while close to 50 percent would chose something other than the bad item, only two percent go shopping for the stuff that makes the face turn a happy shade of green. The Cleveland coffee story is interesting in that regard. What does both change behavior and not make the research too burdensome?

    Comment by kevin doyle jones -- Jun 15, 2007 @ 8:27 am

  4. Kevin, do you know his name/the name of his organization? I’d love to find out more about his work and connect him and Nathan Shedroff. I’m fascinated with how people make purchasing choices. Admittedly, I sometimes fall victim to long-term brand loyalty rather than making a more “social age” choice. In my case, information, knowledge and brand are fighting for position in my brain.

    In our fast-paced-quick-cut-Victoria’s Secret- Coca Cola-Viagra culture, we are so programmed by the brilliant and at times hypnotics minds at the giant Ad agencies that direct our daily feed of visual stimulus that it is often hard to distinguish what one Wants from what one WANTS. Perhaps one way to begin to effect change (until the systems and technology are in place to really help us make better decisions) is to get higher-end Ad agencies involved in the movement.

    I’m not familiar with The Cleveland coffee story. Can you share more?

    Comment by Susanne Goldstein -- Jun 15, 2007 @ 8:58 am

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