Georgia enforces labeling rules for cottage food products to ensure consumer awareness

On February 11, 2025, the Georgia House Legislature introduced House Bill 398, aimed at regulating the sale of cottage food products within the state. This bill seeks to clarify the responsibilities of cottage food operators and enhance consumer awareness regarding the nature of these products, which are typically homemade and sold directly to consumers.

The primary provisions of House Bill 398 require cottage food operators to display specific information about their products. This includes the operator's business name, contact information, and a clear statement indicating that the products are produced in a residential setting exempt from state inspection. The bill mandates that this information be presented in a legible format, either on product labels, placards at points of sale, or on websites where the products are sold. Notably, if the items are sold via telephone or custom order, operators may forgo displaying this information but must still inform consumers about the lack of state inspection.

Debate surrounding House Bill 398 has focused on the balance between consumer safety and the promotion of small businesses. Proponents argue that the bill enhances transparency and consumer protection, allowing buyers to make informed decisions about the food they purchase. Critics, however, express concerns that the requirements may impose undue burdens on small operators, potentially stifling the cottage food industry, which has seen significant growth in recent years.

The implications of this bill extend beyond regulatory compliance. Economically, it could impact local markets by either supporting small businesses through clearer guidelines or hindering them with additional requirements. Socially, the bill addresses growing consumer demand for transparency in food sourcing, reflecting a broader trend towards health-conscious and locally sourced products.

As House Bill 398 moves through the legislative process, its future remains uncertain. Stakeholders, including cottage food operators and consumer advocacy groups, are closely monitoring developments. The outcome of this bill could set a precedent for how cottage food products are regulated in Georgia, influencing similar legislative efforts in other states.