To combat market inefficiencies resulting from the information asymmetry that
exists between businesses and consumers, an increasing number of mandated information
disclosures are imposed on businesses to give consumers the means to
protect their own interests by making autonomous, informed choices. Prohibiting
misleading information and informing consumers with correct information lies at the
core of the so-called information paradigm which resulted in consumer information
models across the world.
In those models, consumers are often perceived as benefit-maximising creatures.
Information requirements allow consumers to make decisions themselves, decisions
which are supposedly better than anyone else can make for them. According to the
economic theories underlying those models, informed consumer decisions are efficient.
It follows that if consumers are given full information, they will consistently
make decisions that maximise their welfare. As a consequence, the disclosure of
correct information and information in general cannot have a negative impact on the
purchase decision of consumers. Being rational creatures consumers are supposed to
ignore information that is ineffective or irrelevant.
Pre-contractual information duties and labelling requirements for foodstuffs
range among the earliest information obligations that have been adopted in view
of protecting consumers. Together with the prohibition of misleading commercial
practices and transparency requirements for contract terms, these measures seek
respectively to prevent and to combat the deception of consumers.