Consumers should be free to make their own choices of what to buy, based on whatever criteria seem good to them. Of course, that would make it well-nigh impossible to turn a profit on cloned animal products, since most people don't want to eat such things. By not labeling those products as such, providers can force consumers to buy things they would not freely choose to buy, simply because they're indistinguishable from traditional food sources.
Is it really safe? Maybe, maybe not. The government doesn't exactly have a great track record on predictions, though.