<<

....,...-CONSUMER DECISIONS: PRoBLEMS AND POLICIES .

PUBLISHED BY THE j AGRICULTURAL POLICY INSTITUTE _ NORt H CAROLINA, .aIf.TE UNIVERSITY I, AUGUST, 1965 WHAT BUSINESS CAN DO TO BETTER INFORM AND PROTECT THE CONSUMER

Milan Do Smith Executive Vice President National Canners Association Washington, Do C-o

When I received your invitation to speak at this meeting, I was very happy to be able to accept, not only on my personal behalf but even more on behalf of the National Canners Association,

As I look about this gathering, I can see many of my friends in governm_ent, in and in busines s, Those here who know me also know that I welcome any opportunity to discuss , particu­ larly the industry, and consumer protection and information, Consequently, this has been a welcome assignment, Any recounting of what the canning industry has done and what it continues to do for con­ sumers could, I believe, be applied to most segments of the industries concerned with the production and marketing of consumer goods,

Before I plunge into the various aspects of the consumer movement, and industry! s part and stake in that movement, I would like to mention that the industry has been considerably in the public eye recently, It is interesting to remember that the ca.nning business has managed to grow and prosper while producing products consistently Iowan the consumer price index, Consumers, and in the food business this means everyone, have enjoyed our products, for canners pack, , , and sell. , , more than 27 billion of food every year,

This goes hand-in-hand with the American entry into the,"Age of Abundance" mentioned last year by Secretary of Agriculture Freeman, He has said, IiIf American consumers are to get the most out of the Age of Abundance, new programs and new emphasis are needed, II Well, we canners have a half-century record of initiating new programs to improve the quality, acceptability and variety of our products and we are contin­ ually re-examining our emphasis on emerging consumer groups so that the maximum nurnber of people will be better informed,

Mr, Freeman also said that lIProtecting the basic rights and interests of the consumers is a job for all of us--for Government, busi­ ness, labor, but above all for the consumers themselves. II I entirely

-79- agree' with the Secretary, and most heartily on the latter poinL Let me say that we at the National Canners Association have been doing all we can to help the consumers protect themselves, I will demonstrate how we go about this a little farther on in this discussion.

Last, he said that the effects of the Age of Abundance are nowhere more evident than in the food economy and he re-emphasized that we eat better, with more variety, and for less real cost than ever before in history, here or anywhere in the world.

While our success in producing, proce'ssing and distributing this abundance makes our consumers the envy of the world, this success is no accident. Neither is it inevitable, The American success, in every business whether it be food or hardware, stems from the enterprise and hard work of people who were willing to take risks, invest their capital and their labor~ They were, and are, willing to take these risks because they earnestly believe that if they can produce a marketable product they will earn a fair profit. While this is quite basic, it is equally basic that if the consumer is not satisfied, the product will not succeed and the risk and labor will have been to no avaiL

What this really means is that the most successful of our American businesses achieved this success by acting in the best interest of the con­ sumer.

Certainly this is true in the canning industry and our position is an historic one. In the early 1900 1 s, the comparatively young canning indus­ try was one of the leading advocates of a federal food and drug law. When the National Canners Association was formed in 1907, there was imrnediate cooperation with federal officials to aid in making the food law effective. As a consequence good faith was established early. Convinced that the keystone of a sound and permanent canning industry was scientific research, ours was the first national trade associati.on to establish a laboratory solely for its industry's research and solution of its technical problems. In other words, even then we were concerned with product dependability and con­ sumer protection. To demonstrate how important this research is to the industry, last year our own laboratories devoted more than 75, 000 man~ hours to various projects. That our programs have the continued faith and respect of the government may be seen by the fact that nine of our research projects were conducted in cooperation with government. For example, one project conducted under contract with the United States Department of Agriculture has as its objective the development of standby procedures to reduce fallout contamination of and to a . safe leverin the event that this ever becomes necessary.

-80- Another major of the National Canners Associationlabora­ tories was research concerning the alleged presence of pesticides in the of the Mississippi Rivero

Long before the current national interest in cleaning up our nation's streams, we at NCA have been busy with this very problem as it concerns

our own industry and the public 0 We realized years ago that the nation's water supply is a vital asset whose quantity is not unlimited and whose quality must be proteCtedo Water withdrawn from the supply must be returned to rivers, streams and lakes in a condition which does not incon­ venience the community or others who· use ito Furthermo·re, it must be treated by methods which are compatible with conservation requirements

and within realistic production costs 0

Technologically practical and economically feasible methods must be developed and industry, in most cases, must be given the criteria

and operational procedures 0 It cannot be expected that each producer of industrial waste has the trained scientists and the resources necessary for research, and only a united effort can solve these problemso

To this end, a three-year research program is under way involving the Water Quality and Water Pollution Control Agencies of the State of California, one of its large cities and the National Canners Association Research Foundation as well as an individual canning firm.

When most people ask what industry does to protect the consumer, they think only of the product at the point-of-purchaseo But our industry recognizes that the consumer also needs his natural environment pro­ tected as well and our research team, coupled with the active support of nearly 600 canners, does its best to provide safeguards for the public today and in the future.

It is particularly significant, I believe, that the proj ect which I have just mentioned is a joint efforto It is an outstanding example of how the federal government, a state government, a city administration, a trade association and an individual company can cooperate, in harmony, to pool the best resources of each to work for the common good of the people of this country. Our industry can take considerable pride in the fact that we are among the first to be a part of such a cooperative venture, that it was entirely voluntary and in recognition of; and response to a growing public needo This environmental protection is our industry's first line defense in behalf of the consumer.

The. second line of protection for the consumer is our ceaseless effort to develop and disseminate procedures which, if followed, will maintain absolute product safety .

-81- Again, the canning industry can chalk-up another "first" in the realm of government-business cooperation for consumer protection, Product safety and consumer protection begins in the fields where can­ ning crops are grown and in the where is taken and con­ tinues through production and distribution, In the hope of establishing . better teamwork and understanding between the members of this industry and an important government agency, in 1963 I discussed with FDA Com­ m.issioner of Food and Drugs, George Larrick, that a joint workshop to promote mutual government-industry understanding of problems and programs be held. Mr. Larrick was enthusiastic, and plans for such a workshop were soon under way.

With many personnel in attendance, the FDA's food research program was explained, including examples of research projects concerning methodology, pharmacology and toxicology problems. These were related to changes infood , the history of food standards, field studies on subject to standardization and food additives. While law enforcement is, and should be, Food and Drug Administration's pri­ mary responsibility, its personnel welcomed the opportunity to assist industry through their Division of Advisory Opinions and Industry Infor­ mation Branch. The entire workshop clearly demonstrated the great value in voluntary compliance and provided an opportunity for our industry to see the other side of the story in the FDA's administration of difficult and complicated federal law. But most important, all of us feel, was the establishment of a real rapport between our own technologists and their counterparts in the government agencies.

Armed with greater understanding, our own industry people in can­ neries throughout the nation can perform their tasks with assurance that they are in compliance. Doubly armed with the NCA laboratory-developed technology, our people can continue to maintain the long record of safety already established by the canned food producers in the United States which already stands as a tribute to the work of these scientists, growers and processors.

Our industry's third Hne of defense to protect consumers is in the realm of information. Canned food is a . Much of the bulk of fresh foods such as stalks, husks, stems and other waste has been removed and as a consequence the is a small one and the is correspondingly limited in size. Yet this label contains a wealth of information to protect the consumer .. Again, I am proud to say that the National Canners Association has for many years promulgated pro­ grams designed to safeguard the consumer. Our descriptive labeling program gives her more information on the label than is required by law. Likewise, we have,on a voluntary basis, reduced the number of can sizes to a reasonable number while still giving latitude for and

-82- development, This is no small feat considering the fact that there are more than 1,200 varieties of canned foods on the market today,

The subject of consumer interest is particularly sensitive at this time because the food industry, of which our industry is an integral part, has recently been suggested as the consumer's adversary, I submit to you here today that an industry whi.ch has quietly and without fan-fare con­ cerned itself with environmental protection for all of our people; worked for the enactment of the original food and drug laws; voluntarily estab­ lished workshops with personnel frorn the regulatory agencies and historically has been in the forefront of technological research and development would hardly place all of this in jeopardy by deceptively packaging or labeling its products,

The consun1er has managed to survive quite well over the years, If any confusion exists in connection with her shopping, we believe the need is in improved communications between manufacturers and distrib­ utors of food and non-food items available in grocery stores and the consumer, Our industry has supported voluntary programs, and where necessary, the enactment of laws to rnake it possible for her to be assured of adequate information on size and content; also that the have print sufficiently' large enough to be easily read under normal circumstances, etc.

Still, our industry is faced with the prospect of burdensome legis­ lation in the form of Senator Hart's Bill S, 985, the so-called Fair BilL When I first testified before the Senate Antitrust and Monopoly Subcommittee hearings on packaging and label­ ing practices, concerning an earlier version of this bill, Senator Hart himself said, and I quote: "We do feel that the canning industry has been and continues to try to do an effective job in this area, it would be rny irnpression, in a measure more seriously than most other segments of the economy, Ii

Senator Ribicof£, a co-sponsor of the bill, commented in this ITlanner and I'm quoting again: 'lAs a Yl1atter of fact, voluntary activity on the part of industry to guard against deceptive packaging has existed for a long tiYl1e, The canning industry, to name but one, is a good example of an industry acting through a strong national association to help assure gen­ erally good industry-wide packaging and labeling practices, II

I will not burden you with a sumYl1ary of the Hart bill, for this is a discussion of what industry has done on a voluntary basis to protect H.le consumer, But I will say that we believe the bill to be unneces sary and burdensome, and that it will rneasurably increase costs to consumers while not giving theYl1 any m.easurable increase in protection,

-83- 'Returning for a moment to the assertion that the consumer is con", fused, let,me illustrate the extent of what-our industry has done, and continues to do, to inform the consumer. Since 1952, we have distributed nearly 13 million leaflets explaining our Descriptive Labeling Program, These have been sent to housewives, schools, yputhgroups, adult educa­ tion programs and the like . An additional 2L million leaflets, devoted in part to labeling, have been distributed to these same groups.

Furthermbr,e,our labeling manual has been widely distributeds.ince the first publication a.quarter ofacentury agh and it has, constantly been revised and updated. More than 3, 300 copies are presently in ,use ,by canners, buyers, hrokers, label manufacturers and others.

The National Canners Association annually spends hundreds of thousands of dollars in consumer and trade education programs.' For example, our Home Economics-Consumer Services Division's primary objective is to provide factual information about canned foods and their use. Educational publications which include up-to-date information on can sizes, labeling, nutritive values and how to buy canned foods are sent to teachers, home economists, homemakers a.nd others. Factual information is also sent to newspapers, magazines, radio and television stations, authors of books and texts and to syndicated columnists.

All told, we have distributed nearly 34 million pamphlets arid other educational material during the past ten years. Many of these are passed along to others and teachers report that most of the publications distributed at schools' are taken home to be read by the parents.

, If there are cases of consumer confusion, and we believe these are comparatively few in' relationship to the number ,of shopping decisions she makes, even these few can be eliminated by further improved communica­ tions between manufacturers, retailers and consumers.

In spite of all which we and other industries have done, we still have abig task ahead of us . It is becoming common knowledge that nearly half of our population is under twenty years of age, and that every year new millions become young adults. Each year we must tell our story anew for there are millions who have never had the opportunity to hear it.

Technological improvements and new concepts have created a product explosion which parallels the population explosion. We must devote the same careful quality control and production techniques to these new products as we have with. the more familiar ones and consumer information must keep pace.

-84- And, I believe that these achievements will corne. And it will be • the consumer who benefits. A short time ago, the Department of LaboT found it necessary to revise the weighting of the elements which make up the cost-of-living index--food, shelter, clothing, transportation and so on. The revision was necessary because food now represents such a greatly reduced fraction of the cost of living that the old index no longer reflected reality. I hope that those who feel that the consumer needs to be protected from our industry know that the cost of food now constitutes less than one­ fifth of the money Americans bring horne in their pay . As I see it, this is the real story of an industry which is serving, and protect­ ing, the consumer ina very real and measurable way. And we're accomplishing this feat in the face of continually ri.sing costs for labor and materials.

In summary, I believe that industry must continue to broaden its environmental protection of the consumer; the water he drinks, the air he breathes as well as the industrial areas in which he lives and works. This is being done. Most progressive businesses began work in this direction years ago.

The interchange of technological information between business and the agencies which regulate it must become more of a two -way street, New legislation, without understanding, can be self-defeatingas to purpose. It can be costly to the consumer and the producer and without benefit to either party.

In conclusion, I reiterate that most important is the great need for information. As I have endeavored to show, we in our own industry have done much. But the funds of any trade association are comparatively limited. Many of you here at this conference on Consumer Decisions, Problems and Policies are educators. If you were to invite industry members to speak before your various groups, you would find the basis of understanding broadening. Visits to canning plants of our members can be arranged. This will give you first-hand information on our indus­ try and will do much to resolve questions which you may have.

I can pledge that the National Canners As sodation will provide full cooperation.

-85-