ALEXANDRIA, Va. – On Friday, NACS announced the lawsuit to prevent New York City from enforcing its menu-labeling regulations prior to the compliance date set by the U.S. Food and Drug Administration (FDA) has been settled. NACS filed the lawsuit, along with the New York Association of Convenience Stores (NYACS), the Food Marketing Institute (FMI), and the Restaurant Law Center, in July. The city agreed to wait until May 7, 2018—the federal compliance deadline—to enforce FDA menu-labeling rules.

“This settlement with New York City is a clear victory for common sense. States and cities cannot enforce menu labeling rules until [FDA] rules are enforced. We’re pleased that New York City has agreed not to jump the gun,” said Lyle Beckwith, NACS senior vice president for government affairs, in a statement. “There are good reasons for everyone to wait: It is increasingly clear that the federal regulations have real problems that must be fixed before they go into effect. A recent economic study confirmed that total costs for all of the industry under the rule will be more than triple the FDA estimate, at more than $300 million per year—and seven times the estimate for convenience stores.”

Beckwith also pointed out that “no matter how much businesses spend to comply with the FDA’s rule, routine calorie count variations would result in 93% of prepared foods being in violation of the rules. NACS members and other businesses will need to comply with the federal and city rules once they properly take effect. NACS urges its members to become educated on those rules and work to come into compliance. NACS has resources to help its members do that here.

James Calvin, NYACS president, added, “We’re relieved that common sense prevailed here. The attempt to prematurely implement this rule was clearly a governmental over-reach by the city of New York.”

“NACS will continue to battle for common-sense changes to the federal regulations through the regulatory and legislative process so that the rules ensure NACS members can provide nutrition information to their customers in a way that makes sense for everyone,” Beckwith said.