But not allowing be to have the data to make a choice because a certain undefined cadre of society considers that choice to be irrational seems exceedingly likely to have a chilling effect.
So now you can't label your goods as phthalate-free because someone somewhere decided, perhaps with the help of a plastics manufacturer (yes I'm cynical), that "there's no rational reason to avoid them"?
This prevents people from being more conservative with risk than the authority who decides we're not allowed to have that information; yes it also means people can make a decision that you wouldn't but we all have the information available.
If GMOs have nothing to offer, why would the consumer want them, harmful or not?
Except they won't be, because "organic" doesn't involve less pesticides - it often involves more pesticides but of a more "natural" flavour. It may have started from the desire of some consumers to buy food that's made locally and with a more pre-industrial feel to it (because they believe it's healthier), but now it's just a way to milk people who have strong opinions about food.
In the EU (as we still are in the UK for the moment) this http://ec.europa.eu/agriculture/organic/eu-policy/eu-legisla... is the situation with food labelled "Organic". It's certainly not about being pre-industrial, it's about being sustainable and cautious with natural resources and health.
And DHMO in this context means the GMO fear makes about as much sense as DHMO fear. People are afraid because it sounds "chemically".