Warning Labels More Effective Than Fat Tax

EDMONTON, AlbertaPutting warning labels on snack foods may be more effective than a "fat" tax for deterring overweight people from making unhealthy purchases, according to a study published in the Journal of Consumer Affairs.

Researchers at the University of Alberta surveyed 364 shoppers in random Alberta grocery stores and asked them to choose between high-fat and healthier snacks in the 50 cent to $2 range. Some of the items carried a hypothetical warning label. They found while price alone wouldn't deter them from buying snack foods, shoppers including those with the heaviest body mass index did pay attention to a label that warned of high fat content and included a note that the item was being taxed because of it.

"The consumers who heeded the label didn't care about the price, but responded to the warning and were much less likely to buy the snack," said Sean Cash, an adjunct professor of rural economy at the U of A, who led the study.

Cash said the warning labels pack a bigger behavioral punch because they are far more noticeable than the price differences that would result from snack taxes. Therefore, including warning labels on unhealthy foods would be a better option than a fat tax, which has already been implemented in varying degrees in the United States, and is being considered for Canada.

"Based on the reaction of shoppers, a tax seems to be the least effective for the people you want to reach most," he said. "If you want to use the tax to change the habits of consumers, it won't be effective. A nickel here and there in tax isn't going to change behavior in a big way."