Except...that isn't the scenario in this story. This is a long-established resident of a rural area who is selling fruitcakes by word of mouth to customers who are mostly NEIGHBORS AND FRIENDS.
County bans Redding man's fruitcake sales : News : Redding Record Searchlight
Having been to Redding, where this incident occurred, i can assure you that if you needed to find Jack Melton for a faulty fruitcake, and sue him, he's in the local phone book.
The thing is...a lot of people in small towns sell items like this to make money on the side. In the south, it's pecans, or boiled peanuts, or fresh-caught seafood, or home grown peaches. In the midwest, where I grew up, it was jam or jelly. My boyfriend's mom sold something like 30 dozen Christmas cookies to neighbors and friends who don't have time to bake them themselves.
This is the sort of commerce that occurs daily in small towns and rural areas, and the government doesn't need to butt into it. This is government solving a problem that didn't exist.