11/28/2011 03:22 pm ET Updated Jan 28, 2012

A Second Chance For Faulty Food? FDA Calls It 'Reconditioning'

When a school lunch supplier repackaged moldy applesauce into canned goods and fruit cups, it drew a sharp warning from federal health regulators last month -- and general disgust from almost everyone else.

"I was appalled that there were actually human beings that were OK with this," said Kantha Shelke, a food scientist and spokeswoman for the Institute of Food Technologists. "This is a case of unsafe food. They are trying to salvage that to make a buck."

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