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The illegal use of gutter oil (GO) as cooking oil is a serious food fraud problem in China and has raised widespread concerns. With the popular use of internet, Koubei, a food ordering app, launched a campaign that every restaurant could pledge on the platform that it is GO free. This paper evaluates whether consumers value the GO-free feature reflected on their willingness-to-pay (WTP) to the claim. Results show the GO-free claim receives a positive WTP, and consumers are even more sensitive to the GO-free pledged by small businesses and independent restaurants. For policy implications, results confirm the advantages that the online platforms have in providing food safety information and alleviating the market failure caused by asymmetric information. It will complement the governments' efforts in preventing GO use and other fraud behaviors in food markets. [ABSTRACT FROM AUTHOR]

“All natural” food labels have become increasingly popular in recent decades. Labels may communicate to consumers a level of food quality above that of unlabeled products. In April 2011, a nationally representative survey was conducted asking respondents to estimate the likelihood that they will increase purchasing in response to an “all natural” label on food products. The sample totaled 1,000 respondents, with 49% being male and 35% between the ages of 45 and 64. Demographic information includes gender, age, income, region, and education. Ordered logit models were used to estimate the likelihood of changes in purchasing based on the “all natural” label. This stated that intended behavior change was evaluated using the ordered logit estimates for nine products: beef, pork, poultry, ice cream, yogurt, cheese, milk, soft dairy products, and bread and bakery products. For all products, being male and having too little information at grocery stores decreased the likelihood of purchase. Conversely, those respondents, who associate the “all natural” label with no preservatives, perceived such products to have improved taste, improved nutritional value, and improved food safety increased the likelihood of purchase. [ABSTRACT FROM AUTHOR]