In the present “organic” food movement (no “unnatural” chemicals) the organic growers have to lobby the government to define what the term “organic” means (I have read of complaints that the government is redefining it into something different from which those who market such foods intended).
However, in most supermarkets if one wants “organic” we do not label all “non-organic” foods as “non-organic”; we simply label the organic foods as “organic.”
This same principle governs the labeling of other kinds of foods.
Under capitalism, the state cannot force anyone to label anything. Companies are free to label their foods as “non-genetically altered,” and to define the rules that allow other food companies to use this term (and then to trademark the brand name to ensure its proper use).
This private certification system will satisfy those who only wish to buy “non-genetically altered” foods, without placing a burden on those who wish to sell genetically altered foods. It will be up to the private label company to enforce the use of their “non-genetically altered” label/brand, i.e., the “Good Housekeeping” seal.
Those who are concerned about the “genetically-altered” issue can purchase these private label brands — those who do not think it is a valid issue can purchase everything else (which will more than likely be cheaper). Anyone who sells genetically altered foods will not be able to use the “non-genetically altered” approval logo.
What we do not need, is the situation we have now: where the government decides how to label products — as opposed to having consumers and producers choose labeling standards in the marketplace.