If it's really true that they're scrapping the whole crazy idea, that's great news - thank goodness. Animal welfare certainly isn't perfect but it would be a good deal worse if the industry were left to regulate itself. Aside from the inevitability of a higher incidence of cruel and negligent treatment of animals, it would have put consumers at far more risk than they are already.
We have seen in other areas - banks, police operations, food industry, etc., etc., that self-regulation or light touch regulation just doesn't work. I truly think this government is becoming more deranged by the minute.