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Why is american cheese?
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Processed cheese product means it's less than 51% cheese, and processed cheese food is more than 51%.
The key part is that there's no definition for "prepared cheese product". The regulations are specific in the wording, and even the text layout that you can use.
The reason for the switch is the inclusion of milk protein concentrate, which the FDA doesn't list as an acceptable dairy additive for anything that wants to label itself cheese of any type.