I think in trying to sort out all of the facts on this issue, we have to distinguish the difference between labeling
 a product "dairy free " or "non-dairy" and what the actual ingredients the label states is in the product.  I think
 the question raised about 2% versus 3% is a separate issue, which relates to the *ingredient* labeling, rather
 than the labeling of the packaged product as "non-dairy".

The following is what I understand on these issues.  I would appreciate anyone making the appropriate
additions/corrections as needed so we can all get to the true facts in this matter.

From what I understand, although a product might still  be labeled as "non-dairy" , all the ingredients still have
to be listed.  That is why it is so important to  ignore the "dairy free" or "non-dairy" labeling, and instead read
the ingredients to verify the contents and to familiarize oneself with all the various terms that are alternative
descriptors for milk components.

There are two federal agencies that regulate the labeling of foods, one is the FDA and the other is the USDA.
 The FDA pretty much covers the labeling of all foods except meats, and considers a product misbranded if the
 ingredient is not listed on the label.  If an ingredient is less than 2%, it still *must* be on the label, but it does not
 have to be listed in descending order as the other ingredients are required to be listed.  (All ingredients are usually
listed in descending order of percentage of composition of that ingredient in the product.)

Notice that the "2%" issue relates to *ingredient* labeling , not to the issue of calling a product "non dairy" or "dairy free".

I am not sure what the USDA considers a misbranded product.

USDA regs, which cover meat products, are not quite as stringent as FDA regs, and things like natural flavors may
 include dairy derivatives but may not be listed on the label as such.  Meat companies may voluntarily add the information.
 I did call Oscar Mayer recently, for instance, to inquire about their products with natural flavorings, and was told that if
the natural flavoring is derived from milk, then the milk derivative will be listed as an additional ingredient on the label.

I am very cautious with meat products because of the variation in the labeling requirements.

I guess the only way to be sure is to call the manufacturer.

In the booklet, "Understanding Food Labels" by the Food Allergy Network,  there is this statement regarding "non-dairy"
 products:  "Because of a loophole in food labeling laws, casein or caseinates are considered additives even though
they are milk derivatives.  Therefore, foods that contain these ingredients can legally be advertised as non-dairy products.
 However, casein comes from milk, is one of the major milk allergens, and will cause a reaction in most people with milk
 allergy.  The new food label regulations require that casein be identified as a milk derivative.  You may see ingredient
 statements that read, "casein (a milk derivative)"  Unfortunately, the front of the package may still advertise the product
 as non-dairy".

The booklet "Understanding Food Labels" is available for purchase at a nominal fee through the Food Allergy Network,
 its web address is www.foodallergy.org

Lynda