I'm on the libertarian side of things but I don't know of any free-market approach to such problems.
Um, I was thinking of their canning guidelines. Oh, that was the Dept. of Agriculture. Nevermind.
The coloring has been tied to dozens of cases of anaphylactic shock and near-death, according to the Center for Science in the Public Interest (CSPI), which petitioned the FDA way back in 1998 to require clearer labeling for cochineal-infused foods.
The CSPI are known anti-capitalists and heavy duty leftists. So we should expect a lie.
It's Jan, 2011 and in over twelve years (1998-present) we get only "dozens of cases". Is that 24, 36, 48, 60, 72, 84, or 96 cases? You can bet if it were over 100 or even near the article would have said, "over 100" or "nearly 100".
So at best they have 24-72 cases over 12 years. At 72 total cases that's .016438 incidents a day. How much of this stuff is consumed every day and by how many people?
This is typical mission creep. If you're allergic stay away from dyed red products. If you're Jewish, Muslim or vegetarian stay away from dyed red products. If in doubt it's up to you.
If it's that critical use tort law to handle it. Problem solved.
That's the free market solution. Shut these bureaucrats down. They do more harm than good.