The Small-Business Nutrition Facts Exemption
The cottage food exemption is a state one. There is also a federal exemption for small businesses, and it works differently. If your sales are low and you make no nutrition claims, you may be able to skip the Nutrition Facts panel by filing a short notice with the FDA. Here is how.
A federal exemption, separate from cottage food
Cottage food laws are state rules that often let you sell direct without a Nutrition Facts panel. The small-business exemption is a federal one, written into the FDA's nutrition labeling rule. It can cover sales that reach beyond direct, like some wholesale, if you qualify and file for it.
The low-volume exemption
The most-used version is the low-volume exemption. It generally applies to a business with a small workforce that sells under a set number of units of a product in a year. To claim it, you file an annual notice with the FDA for that product. There is a short form for this, and the exemption runs for the period you filed for.
- It is tied to employee count and units sold, not just revenue
- You file a notice with the FDA, one per qualifying product, each year
- It is not automatic: no notice, no exemption
A nutrition claim voids it
The exemption disappears the moment you make a nutrition claim. Put high protein, low sugar, or keto on the package and you owe a full Nutrition Facts panel, small business or not. This is the same trap the direct-sale exemptions have: a claim always forces the panel.
The rest of the label still applies
Exempt from the panel is not exempt from the label. You still declare the product name, net quantity, the full ingredient list, allergens, and your business name and address. The exemption relaxes the Nutrition Facts panel and nothing else.
Build the panel anyway, keep it ready
Filing for an exemption is worth it for some sellers, but a panel never hurts. Retailers and marketplaces often ask for one regardless, and a claim can force it overnight. Nutripane builds the panel and the rest of the label from your recipe, so you can file for the exemption and still have the panel in hand. Confirm the current thresholds and file the notice with the FDA before you rely on it.
Questions
Are small businesses exempt from nutrition labeling?
They can be. The FDA offers a low-volume small-business exemption from the Nutrition Facts panel for businesses with a small workforce and low unit sales, but you have to file an annual notice with the FDA for each qualifying product, and you cannot make any nutrition claims. The rest of the label is still required.
Does the small-business exemption cover nutrition claims?
No. Making any nutrient content or health claim, such as low fat or high fiber, voids the exemption and requires a full Nutrition Facts panel. If you want to make a claim, plan on providing the panel.
Keep reading
This page is general information, not legal advice. Cottage food and food labeling rules vary by state and change over time. Confirm current requirements with your state's cottage food program and the FDA before you sell. See your state's rules or how to label your product.