Quality Labeling: Too Much Information Could Impair Effectiveness of Certification

Report of May 8, 2013

Following a series of food scandals, consumer confidence in the industry has been shaken. However, criticism has not only been directed at the industry itself, but also at the providers of quality seals who were so quick to certify the products. There are increasing calls for improved transparency and, with regard to organization and the rules of certification, more transparency does indeed make sense. However, this is not necessarily the case when it comes to product information. The present model study demonstrates that the obligation imposed by quality seals to provide more detailed product quality information could in fact restrict the effective functioning of the markets.

Martin Pollrich and Lilo Wagner in: DIW Wochenbericht 19/2013 (PDF, 88.81 KB)