California Bans 'Sell By' Food Labels to Cut Waste

New Law Standardizes Food Date Labels Statewide

California became the first state in the nation to ban consumer-facing “sell by” food labels under a new law that took effect July 1, marking a historic shift in how packaged groceries display expiration-style dates. Assembly Bill 660 requires food manufacturers, processors, and retailers that display date labels on food manufactured on or after July 1, 2026, to use uniform language that separates product quality from food safety. The legislation aims to eliminate decades of consumer confusion over what various date stamps actually mean and whether food remains safe to eat past those dates.

Under the new standardized system, manufacturers must use “BEST if Used by” or “BEST if Used or Frozen by” to indicate peak product quality and freshness. When a label relates to food safety rather than quality, manufacturers must display “USE by” or “USE by or Freeze by” instead. The law prohibits covered food products sold in California from displaying consumer-facing “sell by” labels, although retailers may continue using coded stock-rotation labels that consumers cannot easily read.

“Using clear, consistent date labels will help reduce confusion about when food is safe to eat, cut down on unnecessary food waste, and make it easier for consumers to make informed decisions,” Assemblymember Jacqui Irwin, D-Thousand Oaks, who authored the legislation, wrote Monday on X. “A simple change with meaningful benefits for families, businesses, and the environment.”

Addressing Widespread Consumer Confusion

State officials designed the change to reduce consumer confusion over the dozens of different date-label phrases currently used on food packaging across America. According to the California Department of Food and Agriculture, more than 50 differently worded date labels have been used throughout the United States, leading many consumers to mistakenly discard food that remains perfectly safe to eat. The problem stems from a fundamental misunderstanding: “sell by” dates traditionally served retailers for stock rotation purposes, not as safety warnings for consumers, yet shoppers frequently treat these labels as expiration dates.

The department, citing the California Department of Resources Recycling and Recovery, revealed that Californians throw away the equivalent of 2.5 billion meals worth of unspoiled food each year. Organic waste accounts for approximately 48% of material sent to California landfills, and this decomposing waste generates roughly 41% of the state’s methane emissions as it breaks down. The state designed the law’s mandatory standardized terminology system to stop billions of pounds of unspoiled food from unnecessarily entering California landfills while simultaneously addressing climate-warming emissions.

Limited Scope With Important Exceptions

The legislation does not require manufacturers to place date labels on products that otherwise would not carry them. Instead, it standardizes the wording companies must use when they choose to include quality or safety dates, or when other laws require such labeling. The law preserves several important exceptions, as it does not apply to infant formula, eggs, pasteurized in-shell eggs, beer, or other malt beverages. These product categories follow separate regulatory frameworks at the federal or state level.

The Food and Drug Administration reports that date label confusion contributes to nearly 20% of the nation’s food waste. Currently, infant formula remains the only product with federally regulated date labels, leaving states and individual companies to determine labeling practices for virtually all other food products. This patchwork system has created the widespread confusion California now seeks to address through uniform state standards.

Potential for National Impact

California approved the groundbreaking law in 2024, establishing a model that other states now actively consider. New York state lawmakers recently approved similar legislation that awaits Governor Kathy Hochul’s signature. Lawmakers in Illinois, Maryland, Massachusetts, New Jersey, and South Carolina have proposed legislation addressing food labeling, though these bills have not yet passed in those states.

California’s move establishes a potential model for federal action. The absence of federal regulations dictating what information labels should include has created the current patchwork system. Food manufacturers may face increasing pressure to adopt a single national standard. Individual state actions like California’s could force the food industry to adopt consistent labeling practices nationwide. Companies often find it more practical and cost-effective to produce uniform packages for all markets rather than create different versions for different state requirements.

Separating Quality From Safety

The California Department of Food and Agriculture emphasizes that the law’s central purpose involves separating quality dates from safety dates in consumers’ minds. A “Best if Used by” label refers to peak freshness or product quality, indicating when a food item tastes best but not necessarily when it becomes unsafe. Conversely, a “Use by” label signals when a food item may no longer remain safe to eat, representing a genuine health consideration rather than merely a quality preference.

This distinction carries significant implications for both consumer behavior and environmental impact. Food waste advocates argue that clarifying this difference will encourage consumers to trust their senses and judgment about food quality rather than automatically discarding items based on misunderstood date stamps. The law also allows coded “sell by” information for inventory purposes, provided the code remains difficult for consumers to read and does not use the phrase “sell by” in plain language.

Implementation Timeline and Retail Compliance

While the law officially took effect July 1, 2025, it applies only to food manufactured on or after July 1, 2026, giving manufacturers, processors, and retailers a full year to adjust their labeling practices and packaging designs. Grocery stores can continue using their existing inventory management systems for stock rotation, as long as any “sell by” information remains in coded form that typical shoppers cannot easily interpret. This grace period allows the food industry to transition without requiring immediate destruction or relabeling of existing inventory.

The standardized approach promises benefits for families, businesses, and the environment by reducing unnecessary food waste, cutting methane emissions from landfills, and helping consumers make more informed decisions about food safety versus food quality. California’s pioneering legislation may ultimately reshape how packaged groceries appear on shelves across the entire country, creating a more rational and environmentally responsible food system.