What do you propose instead in this case? Not trying to be snarky, just to get the discussion rolling.
Asking everyone to "play nice" or "don't be evil" also often does not work in practice. I mean I'd love it if it did, but such is life.
I want the FDA to get meta and be empowerd to say if you add sesame to everything just to work around our rules, we'll fine you, because we're not idiots.
Markets respond to regulation, and are distorted by it. It's not a problem with the market.
Efficient markets enforcing centralized mass manufacturing of low quality baked goods is what caused the problem in the first place.