A label performs several functions. First, it (cid:74)(cid:69)(cid:70)(cid:79)(cid:85)(cid:74)(cid:71)(cid:74)(cid:70)(cid:84) the product or brandfor instance, the name Sunkist stamped on oranges. It might also (cid:72)(cid:83)(cid:66)(cid:69)(cid:70) the product; canned peaches are grade-labeled A, B, and C. The label might (cid:69)(cid:70)(cid:84)(cid:68)(cid:83)(cid:74)(cid:67)(cid:70) the product: who made it, where and when, what it contains, how it is to be used, and how to use it safely. Finally, the label might (cid:81)(cid:83)(cid:80)(cid:78)(cid:80)(cid:85)(cid:70) the product through attractive graphics. Advanced technology allows 360-degree shrink-wrapped labels to surround containers with bright graphics and accommodate more product information, replacing glued-on paper labels.

Labels eventually need freshening up. The label on Ivory soap has been redone at least 18 times since the 1890s, with gradual changes in the size and design of the letters. As Tropicana found out (see above), companies with labels that have become icons need to tread very carefully in order to preserve key branding elements when undertaking a redesign. A long history of legal concerns surrounds labels and packaging. In 1914, the Federal Trade Commission Act held that false, misleading, or deceptive labels or packages constitute unfair competition. The Fair Packaging and Labeling Act, passed by Congress in 1967, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries. M13_KOTL2621_15_GE_C13.indd 414 09/03/15 6:29 PM

SETTING PRODUCT STRATEGY | CHAPTER 13 The Food and Drug Administration (FDA) has required processed-food producers to include nutritional labeling that clearly states the amounts of protein, fat, carbohydrates, and calories contained in products, as well as vitamin and mineral content as a percentage of the recommended daily allowance.88 The FDA has also taken action against potentially misleading uses of such descriptions as light, high fiber, and low fat. Not all countries apply such strict definitions. In the United Kingdom, light and lite do not have an official meaning in law, though low fat doesthe food product must be less than 3 percent fat to qualify. As a result, some foods branded light there have been found to contain up to seven times more fat than those described as low fat.89

(cid:56)(cid:66)(cid:83)(cid:83)(cid:66)(cid:79)(cid:85)(cid:74)(cid:70)(cid:84) are formal statements of expected product performance by the manufacturer. Products under warranty can be returned to the manufacturer or designated repair center for repair, replacement, or refund. Whether expressed or implied, warranties are legally enforceable.