The Under Appreciated Burden

The Under Appreciated Burden

• The Under Appreciated Burden

• Market Failure on Food Safety

• The Limitations of Lawsuits

• Government Regulatory Limits

• What Can Do Done

Quantitative risk assessment (by design) does not coincide with society‘ values on risk

• Quantitative risk assessment (by design) does not coincide with society‘ values on risk

• Respecting society's risk perception / values

• This is not probability neglect

Firms are under-rewarded in the marketplace for food safety

• Firms are under-rewarded in the marketplace for food safety

• Consumers cannot buy the level of safety they want
• And consumers want to buy more safety (Harris et al. 2006)

The business of business is to pursue profits

• The business of business is to pursue profits

• Do not look to corporations for altruism

• Not an ethical issue

• Economic distortion creates distortion in risk perception

Competition is fierce

• Competition is fierce

• Cost-cutting vital

• Companies must compete

Lawsuits provide important feedback to invest more in food safety

• Lawsuits provide important feedback to invest more in food safety

• When safety information is available after purchase

• Works proportionate to proof of causation

What food or drink?

• What food or drink?
• Victim’s stool not tested
• What bacteria or virus?
• Apparent isolated case
• No health department investigation

No proof of causation

• No proof of causation

• What food or drink?
• Victim’s stool not tested
• What bacteria or virus?
• Apparent isolated case
• No health department investigation

• Unequal Power Between Victim and Manufacturer

Market inefficiency

• Market inefficiency

• classic situation where government controls necessary

• Regulatory agencies face their own challenges

• Sub-optimization: “Agency retrenchment, retreat, and slowness to act are rational patterns of human social and bureaucratic behavior.” Neal Fortin, The Hang-Up With HACCP: The Resistance to Translating Science into Food Safety Law, 58 FOOD AND DRUG L. J. 565-594, Vol. 58:4 (2003).

Education on food safety

• Education on food safety

• Classic cure for market failure based on inadequate information
• Underutilized

• Improve public health capacities

• Public health a victim of its own success

• Improve success of lawsuits!

• Improve science on causation

Traceability

• Traceability

• Incentive for whole marketing chain to provide safer food
• Opportunity to market food safety (eg: TESCO)

• Citizens’ Food Protection Act

• Private cause of action
• Citizens not their bureaucratic surrogates are the public interest
• Courts can ensure agency decisions reflect republican deliberation rather than an equilibrium of private interest [The Hang-Up With HACCP: The Resistance to Translating Science into Food Safety Law, 58 FOOD AND DRUG L. J. 565-594, Vol. 58:4 (2003)]

Neal Fortin

• Neal Fortin

• Professor and Director

• Institute for Food Laws & Regulations

• Michigan State University

• [e-mail]

• www.IFLR.msu.edu