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Why We Have Less Food Safety Than We
WantNeal Fortin
Director and Professor Institute for Food Laws & Regulations
Michigan State University [email protected]
www.IFLR.msu.edu
© 2008 Neal Fortin
INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
OUTLINE OF TALK•The Under Appreciated Burden
•Market Failure on Food Safety
•The Limitations of Lawsuits
•Government Regulatory Limits
•What Can Do Done
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Why We Have Less Food Safety Than We Want
Foodborne Illnesses Estimates
• 76 Million illnesses /year
• Every day in the United States, roughly:– 200,000 experience acute
illness– 900 require hospitalization– 14 die
Mead et al.: http://www.cdc.gov/ncidod/eid/vol5no5/mead.htm
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Why We Have Less Food Safety Than We Want
Mild Illnesses Discounted
• Discounted: 53 Million cases of diarrhea annually• If < 1 day of diarrhea,
and
• No more serious symptoms
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
Underestimated Costs
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– Traditional cost-of-illness method
• Medical costs, loss of work
• No measure of loss of leisure time, pain and suffering, disruption of daily life
• MSU Consumer Perceptions Study (WTP)
– Craig Harris, Andrew Knight, & Michelle R. Worosz, Craig Harris, Andrew Knight, & Michelle R. Worosz, Shopping Shopping for Food Safety and the Public Trust: What Supply Chain for Food Safety and the Public Trust: What Supply Chain Stakeholders Need to Know About Consumer AttitudesStakeholders Need to Know About Consumer Attitudes, FOOD , FOOD SAFETY MAG. 52-59 (Jun. /Jul. 2006).SAFETY MAG. 52-59 (Jun. /Jul. 2006).
INSTITUTE FOR FOOD LAWS & REGULATIONS
Economic Burden of Economic Burden of Foodborne IllnessFoodborne Illness
$357 billion annually•Willingness to payWillingness to pay•(US alone)(US alone)•Loss of ProductivityLoss of Productivity•Healthcare CostsHealthcare Costs•Not loss of market shareNot loss of market share
(lost consumer confidence)(lost consumer confidence)•Not including LawsuitsNot including Lawsuits
•Tanya Roberts, Tanya Roberts, WTP estimates of the societal costs of U.S. WTP estimates of the societal costs of U.S. foodborne illnessfoodborne illness,(to be pub in Am. J. Ag. Econ.) ,(to be pub in Am. J. Ag. Econ.)
INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
The Human Face of Foodborne Illness
• Quantitative risk assessment (by design) does not coincide with society‘ values on risk
• Respecting society's risk perception / values– This is not probability neglect
Kevin Kowalcyk 1 month Kevin Kowalcyk 1 month before he diedbefore he died
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Market Inefficiency
• 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)
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Market Failure• 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
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008
• Competition is fierce • Cost-cutting vital• Companies must
compete
10 Why We Have Less Food Safety Than We Want
INSTITUTE FOR FOOD LAWS & REGULATIONS
Strict Liability is Not Strict Enough — Limits of
Tort Law
• Lawsuits provide important feedback to invest more in food safety– When safety information is available after
purchase
• Works proportionate to proof of causation
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
– What food or drink?
– Victim’s stool not tested
– What bacteria or virus?
– Apparent isolated case
– No health department investigation
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Imperfect Information on
Causation & Food Safety
INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
• 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
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Less Than 1 in a Million Chance of a Trial for Foodborne
Illness
Trial ~ 0.2 / 1 million acute illnesses
Case ~ 5 / 1 million acute illnesses
INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want14
This is why there are This is why there are exemplary damagesexemplary damages
•Odds of facing trial Odds of facing trial for foodborne illness = for foodborne illness = ~0.2/million~0.2/million
•Odds of being struck Odds of being struck by lightning = by lightning = 2.5/million each year2.5/million each year
INSTITUTE FOR FOOD LAWS & REGULATIONS
Trust Me, I’m From the Government and Here to Help
You• Market inefficiency
– classic situation wheregovernment 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).
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INSTITUTE FOR FOOD LAWS & REGULATIONS
What Can Be Done?• 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
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INSTITUTE FOR FOOD LAWS & REGULATIONS
More That Can Be Done• 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)]
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Why We Have Less Food Safety Than We Want
Commonality of interest between business and stringent product safety standards. - Michael E. Porter, The Competitive Advantage of Nations 648-49 (1990)
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INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
CoursesInternational Food Laws & Regulations
(Overview Course)
Codex Alimentarius
OIE (World Animal Health)
IPPC (International
Plant Protection)
United States
European Union
Asia
Canada
Latin America
Winner 2003 ADEC National Excellence in Distance Education Award19
INSTITUTE FOR FOOD LAWS & REGULATIONS
International Food Laws Online Certificate Program – Instructorshttp://www.IFLR.msu.edu/
John BlakneyJohn Blakney
Nicole CoutrelisNicole CoutrelisAttorneyAttorney
“France / EU”“France / EU”
Gretchen StantonGretchen StantonWTOWTO
“Switzerland”“Switzerland”
Dr. David JukesDr. David JukesLead InstructorLead Instructor
“UK / EU”“UK / EU”
Masako HashimotoMasako Hashimoto“Japan - International”“Japan - International”
Paul AllenPaul Allen“UK / EU”“UK / EU”
Neal FortinNeal FortinDirector / Lead InstructorDirector / Lead Instructor
“United States”“United States”
Dr. Vince HegartyDr. Vince Hegarty Dr. Gerald MoyDr. Gerald MoyWHOWHO
“Codex”“Codex”
Rebeca López-GarciaRebeca López-GarciaLead InstructorLead Instructor
“Latin America”“Latin America”
Attorney / Lead Attorney / Lead InstructorsInstructors“Canada”“Canada”
J. Ralph BlanchfieldJ. Ralph Blanchfield“UK”“UK”
Raul BocconeRaul BocconeUruguayUruguay
“Latin America”“Latin America”
Al HafnerAl Hafner“United States / “United States /
Michigan”Michigan”
Charles CockbillCharles Cockbill“UK / EU”“UK / EU”
Dietrich GornyDietrich Gorny“EU / Germany”“EU / Germany”
Paul O'RourkePaul O'RourkeAttorneyAttorney
“EU / Ireland”“EU / Ireland”
Institute for Food Laws & Regulations – MSUInstitute for Food Laws & Regulations – MSU 20062006
Mary Anne VerlegerMary Anne Verleger“Course Manager”“Course Manager”
William MarlerWilliam MarlerAttorneyAttorney
“United States”“United States”
Michael RobertsMichael RobertsAttorney / Lead Attorney / Lead
Instructor “Asia”Instructor “Asia”
Apr. 10, 200820 Why We Have Less Food Safety Than We Want
INSTITUTE FOR FOOD LAWS & REGULATIONS
David BayvelDavid Bayvel “New Zealand” “New Zealand”
Lonnie KingLonnie King“United States”“United States”
James ScudamoreJames Scudamore“UK ”“UK ”
Veronique BellemainVeronique BellemainENSVENSV
“France”“France”
Bernard VallatBernard Vallat DG OIE DG OIE “France”“France”
Gerald MoyGerald MoyWHOWHO
“Codex”“Codex”
Theresa Bernardo Theresa Bernardo Lead Instructor Lead Instructor
OIE CourseOIE Course
David WilsonDavid Wilson“France”“France”
Cristobal ZepedaCristobal Zepeda“United States ”“United States ”
Alex ThiermannAlex ThiermannOIEOIE
“France”“France”
Eva-Maria BernothEva-Maria Bernoth“Australia”“Australia”
Karim Ben JebaraKarim Ben JebaraOIEOIE
“France”“France”
Institute for Food Laws & Regulations – MSUInstitute for Food Laws & Regulations – MSU 20062006
Francois G. LeGallFrancois G. LeGall“United States”“United States”
International Food Laws Online Certificate Program – Instructorshttp://www.IFLR.msu.edu
Robert L. GriffinRobert L. GriffinUSDA / APHIS / PPQUSDA / APHIS / PPQ
“United States”“United States”
Ian McDonellIan McDonellNAPPONAPPO
“Canada”“Canada”
Bob IkinBob IkinAustraliaAustralia
Stephen OgdenStephen Ogden “New Zealand” “New Zealand”
John Hedley John Hedley Lead Instructor Lead Instructor“New Zealand”“New Zealand”
William P. RobertsWilliam P. Roberts“Australia”“Australia”
Ron A. SequeiraRon A. SequeiraUSDA / APHIS/ PPQ USDA / APHIS/ PPQ
“United States”“United States”
Reinouw Bast-TjeerdeReinouw Bast-TjeerdeCFIA CFIA
“Canada”“Canada”
Ian Smith Ian Smith DG - EPPODG - EPPO“France ”“France ”
Jens-Georg UngerJens-Georg Unger“Germany”“Germany”
Apr. 10, 200821 Why We Have Less Food Safety Than We Want
INSTITUTE FOR FOOD LAWS & REGULATIONS
Apr. 10, 2008Why We Have Less Food Safety Than We Want
Thank you
Neal FortinProfessor and Director Institute for Food Laws & RegulationsMichigan State University [email protected]
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