Under a December 1977 net weight labeling proposal by USDA affecting meat and poultry products, free liquids and liquids absorbed by the packaging material would be excluded from a product's net weight. This study evaluates the potential economic impact on consumers, industry, and inspection officials. It concludes the proposed regulations have been grossly misunderstood by both consumers and producers. The amount of drained weight meat available for sale would not change under the proposed net weight rule. Although the labeled price per pound would likely increase, the cost to consumers for usable product would remain unchanged.