Labelling is an essential element of branding since it allows for product identification. It is printed, or weaved material attached to the goods and gives information on the product in detail. Customers make an easy selection at the moment of purchase based on the product labelling. Labels must meet legal requirements. The Competition and Consumer Act of 2010 require that a company’s label comply with the Act. According to the Federal Trade Commission Act (FTC), label and graphic fraud is illegal and constitutes unfair competition.


The Fair Packaging & Labeling Act sets mandatory criteria on labelling, enhances independent standards on packaging and provides federal corporations with the right to impose laws on packaging in specific areas.


Labelling types

There are three different types of labelling:

  • Brand Label: It plays a significant part in labelling since it offers brand information.
  • Descriptive Label: It stimulates the use of the product.
  • Grade Label: It explains the product’s appearance and characteristics.

Labelling’s Functions

The following are the different roles of labelling:

  • Specifies the product and the content: A label provides information about using the product and caution during the use.
  • Product recognition: The identification of the goods can be helped by labelling. Such as, The garment’s brand name will assist in making a decision among the other garments options.
  • Product assortment: It refers to categorising or grading items in the market based on their many categories.
  • Assists in product promotion: It provides a compelling incentive for the buyer to buy the item.
  • Following the law’s requirements: Labels should comply with the law rigorously.

Labelling’s Importance

  • Since its aesthetic attractiveness, labelling is important because it attracts buyers’ attention and encourages them to buy them.
  • It encourages the selling of the goods since it has the power to make or break a sale.

Labelling is a crucial aspect of a product’s selling. It aids in the grading process and gives information that is needed by law.