Vending Industry Concerned about Health Care Provision

Judson Berger is reporting for Fox News online that a provision in the recently passed House health care bill requires “snack food purveyors to post nutritional information on vending machines.”

Berger writes that the measure would essentially require all vending machines in America display the caloric content of the items in the machine so that consumers can obtain that information before purchasing an item as opposed to looking at the information on the package after purchase. The National Automatic Merchandising Association’s Ned Monroe told Fox News that the industry will feel a ‘“substantial economic hit”’ as a result of the provision. Monroe’s organizations put their compliance costs for the provision at $56.4 million in the first year. Monroe says the industry is already struggling as far as revenues are concerned.

The provision, which is in the bill’s section for nutrition labeling standards for restaurants, would apply “to businesses that own or operate 20 or more machines.” The industry thinks the provision essentially encompasses the majority of machines in America—“6 to 7 million.” The industry told Berger they are working with Congress to find ways to bring down the costs of the provision.

Here is the language in the bill according to Berger’s story, ‘"vending machine operator shall provide a sign in close proximity to each article of food or the selection button that includes a clear and conspicuous statement disclosing the number of calories contained in the article."’
The industry would like to see the provision allow for “a stock menu of caloric content” for the products, which would be located on the outside of the machine.

Monroe told Fox News that ‘"When people buy a snack or refreshment from a vending machine, it's typically not the first time they've purchased the snack, so there is some realization of the calories that might be in that item [.]"’ Cornell Law School associate professor William Jacobson seems to be in agreement, "It just seems like one of those ideas which has been applied at a level that makes it almost farcical . . . It just seems somewhat absurd to me."

Since the provision was included in the bill it clearly has supporters. Rep. Rosa DeLauro (CT) and Sen. Tom Harkin (IA) have introduced separate legislation from which the provision was taken that would essential require national standards for nutritional information. The backers of the legislation see it as a way to reduce the amount diet-related health problems that occur in the United States.

DeLauro told Fox News online that the provision is an ‘“incremental step toward combating increasing obesity rates, which costs our health system over $140 billion a year,’ and are backed by the National Restaurant Association and many public health groups. ‘Numerous scientific studies link eating out -- which can mean a meal at a restaurant or buying a bag of chips from a vending machine -- to obesity, increased caloric intake, and chronic disease . . . This is a fundamental public health issue and I am proud that the health care reform bill’ includes the provisions.”

The bill has a long way to go before the provision becomes law, but Monroe believes the Senate will include similar language in the bill they bring for a vote. Monroe also warned that an unintended consequence could be local governments having to use taxpayer money to pay to update the machines they own.

To read the Fox News story click here.

Posted: 11/10/09