Warning labels better than a fat tax, study shows

Apr 07, 2011

Warning labels on junk food would be more effective than a "fat" tax for deterring overweight people from making unhealthy purchases, a new University of Alberta study has found.

A survey of 364 shoppers in random Alberta showed that while price alone wouldn't deter people from reaching for , shoppers—including those with the heaviest body mass index—did heed a label that warned of high fat content and included a note that the item was being taxed because of it.

The study asked shoppers to choose between high-fat and healthier snacks in the 50 cent to $2 range. Some of the items came with a hypothetical warning label. The responses were analyzed, and showed three groups of consumers. While two of the groups were already sensitive to either price or less healthy snacks and tended to avoid them, one of the groups—the one with the highest body weight—seemed deterred only by the warning label.

"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.

The researchers theorize that pack a bigger behavioural 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," Cash noted. "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 behaviour in a big way."

Instead, people will likely get around the tax by buying in bulk to save money, he added. "For instance, buying less soda pop is a rational response to a tax, but so is buying cheaper soda. A perverse outcome can actually happen."

Explore further: Change 'authoritarian' football culture to produce future stars, says research

More information: The study was published in the latest edition of The Journal of Consumer Affairs

add to favorites email to friend print save as pdf

Related Stories

Recommended for you

Residents of 'boom time' suburbs face unsustainable commutes

7 hours ago

People living in the 'boom time' suburbs of Dublin are more likely to endure unsustainable commutes to work than those living in older accommodation. Research shows that people living in newly constructed housing in the Greater ...

Male-biased tweeting

Apr 23, 2014

Today women take an active part in public life. Without a doubt, they also converse with other women. In fact, they even talk to each other about other things besides men. As banal as it sounds, this is far ...

Developing nations ride a motorcycle boom

Apr 23, 2014

Asia's rapidly developing economies should prepare for a full-throttle increase in motorcycle numbers as average incomes increase, a new study from The Australian National University has found.

User comments : 0

More news stories

Study links California drought to global warming

While researchers have sometimes connected weather extremes to man-made global warming, usually it is not done in real time. Now a study is asserting a link between climate change and both the intensifying California drought ...

Autism Genome Project delivers genetic discovery

A new study from investigators with the Autism Genome Project, the world's largest research project on identifying genes associated with risk for autism, has found that the comprehensive use of copy number variant (CNV) genetic ...