Products may have unintentional and dangerous side effects that, no matter how rare the chance they will occur, need to be noted on product labels.
For some companies, this is an unpleasant proposition because it may dissuade customers from making a purchase. But as labeling expert HTPCO notes, it's worth it to be more transparent with customers. If products aren't properly labeled, it could lead to negative PR.
For example, several news outlets recently covered the use of fire retardants and other chemicals in furniture products, which could cause health concerns ranging from cancer to fertility issues.
"Manufacturers need to be aware that customers have widely divergent priorities," the news source adds. "Couples trying to have children may well be primarily concerned with avoiding any and all contact with chemicals that could have a negative impact on fertility. Heads of households, home owners and smokers may be particularly concerned with possible fire dangers."
Mislabeling a product could even lead to lawsuits, such as the one Nutella recently lost. Some consumers perceived its spread was healthy because of claims made on labels.