Small Business Nutrition Labeling Exemption: Who Qualifies & How to File
Introduction
For small food producers, keeping up with FDA regulations while trying to grow your business can feel overwhelming. Nutrition labeling requirements often represent a significant expense that can strain limited resources. Fortunately, the FDA recognizes this challenge and offers a valuable relief option: the small business nutrition labeling exemption.
This exemption allows qualifying small businesses to forgo the detailed nutrition facts panel typically required on packaged foods. It’s designed to help entrepreneurs focus on product development and business growth instead of expensive nutrition analysis and label redesigns.
In this guide, we’ll break down exactly who qualifies for this exemption and walk through the practical steps to file for it properly.
Who Qualifies for the Small Business Nutrition Labeling Exemption
The FDA has established specific criteria to determine which businesses can take advantage of this exemption. Let’s examine each qualification requirement:
Annual Sales Threshold
The most important qualification factor is your company’s annual food sales. To qualify:
Your business must have total annual food sales of less than $500,000- OR
- Your annual sales of food to consumers must be less than $50,000
This means even if your total food sales exceed $500,000, you might still qualify if your direct-to-consumer sales remain below the $50,000 threshold.
Product Type Eligibility
Not all food products can receive the exemption. Products that make nutrient content claims (like “low fat” or “high fiber”) or health claims on their packaging are not eligible for the exemption, regardless of your business size.
However, most standard food products without these special claims can qualify if your business meets the other requirements.
Business Classification
The exemption is specifically designed for:
- Small food manufacturers
- Small retail food establishments
- Independent businesses (not subsidiaries of larger corporations)
Volume of Production Requirements
Unlike some regulations that specify maximum production volumes, the small business nutrition labeling exemption focuses primarily on sales value rather than production quantity. However, it’s generally understood that qualifying businesses operate at smaller production scales.
Distribution Limitations
While not explicitly limiting distribution channels, the exemption’s structure favors businesses that:
- Sell directly to consumers
- Distribute through local or regional channels
- Have limited multi-state distribution
Businesses with extensive national distribution networks typically exceed the sales thresholds.
Steps to File for the Exemption
Securing your exemption requires following specific procedures to document your qualification and maintain compliance. Here’s how to do it correctly:
Documenting Eligibility
Gathering Necessary Documentation
Before filing, collect documentation that demonstrates your qualification for the exemption:
- Financial records showing annual food sales figures
- Business tax returns
- Documentation of your business structure and organization
- Sales records broken down by consumer vs. non-consumer sales (if applicable)
These records provide the foundation for your claim of eligibility.
Sales and Production Records
Maintain detailed records of:
- Total annual food sales figures
- Direct-to-consumer sales (if using the $50,000 threshold)
- Product types and distribution channels
The FDA may request these records during inspections or reviews of your exemption status.
Submitting a Notification to FDA
Unlike some regulatory processes that require pre-approval, the small business nutrition labeling exemption works through notification:
- Submit FDA Form 3570 (Notice of Claim for Exemption from Nutrition Labeling)
- Include your contact information and basis for exemption
- Keep a copy of this submission with your compliance records
- Be prepared to resubmit annually to maintain your exemption
The FDA does not typically send formal “approval” of your exemption, but they may contact you if they determine you don’t qualify.
Complying with General Labeling Requirements
Even with the nutrition facts panel exemption, your products must still comply with other FDA labeling requirements:
Ingredient Lists
A complete ingredient list is mandatory, listing all ingredients in descending order of predominance by weight.
Allergen Information
You must clearly identify major food allergens on your product labels using either:
- The word “Contains” followed by the allergen name
- Identifying allergens in parentheses within the ingredient list
Products containing major allergens (milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, sesame and soybeans) cannot skip this requirement, regardless of your exemption status.
Maintaining Records for Regulatory Compliance
Create a system to maintain:
- Copies of your exemption notification
- Annual sales records demonstrating continued qualification
- Evidence of compliance with other labeling requirements
- Any correspondence with FDA regarding your exemption
Having organized documentation readily available can save significant time during FDA inspections or inquiries.
Staying Updated on Regulations
Monitoring Changes in Nutrition Labeling Laws
FDA regulations evolve regularly. To maintain compliance:
- Subscribe to FDA regulatory updates
- Conduct annual reviews of your exemption status
- Consult with FDA compliance experts when regulations change
- Join industry associations that provide regulatory updates
Remember that you need to renew your exemption notification annually as your sales figures change.
Conclusion
The small business nutrition labeling exemption offers significant relief for qualifying food producers. By eliminating the expense of nutritional analysis and specialized label design, small businesses can allocate resources toward growth while maintaining essential safety and transparency standards.
Remember that even with this exemption, your responsibility to provide safe, properly labeled food products remains. The exemption is specifically from the nutrition facts panel requirement—not from allergen labeling, ingredient disclosure, or general food safety regulations.
Successfully utilizing this exemption requires careful documentation, consistent record-keeping, and staying informed about changing FDA requirements for small food businesses.
**Need help navigating FDA compliance for your food business?** Global Import Agent specializes in helping small food producers understand and meet FDA requirements. Our team of FDA compliance experts can review your product labels, verify your exemption eligibility, and ensure you’re meeting all necessary regulations—without unnecessary expenses.
We’ve helped hundreds of small businesses successfully navigate FDA compliance, from determining exemption eligibility to creating compliant labels and maintaining proper documentation. Our affordable consulting services can save you time, prevent costly mistakes, and give you confidence that your products meet all legal requirements.
Contact Global Import Agent today for a quick consultation about your small food business compliance needs. Let us handle the regulatory details while you focus on growing your business and creating great products.
If you have any further questions or need personalized assistance, contact us for expert guidance.
