The labeling for functionality of food or food components are recognized globally and are essential for the growth of dairy product industry. To expand the functional claims of dairy product especially fermented milk product, the regulations restricting the labeling of functionality should be amended as soon as possible. The labeling regulations of functionality and efficacy for processed and functional foods in related Acts and subordinated statues such as definition, scope of claims, etc. were reviewed and the problems existed in the system were identified. The definition and classification of efficacy for processed food in Food Sanitation Act were analyzed to revise the labeling regulation of dairy product. A draft of amended labeling regulation for the functionality of dairy product is proposed, which provides consumers with appropriate information of beneficial effects on health purpose for human body structure and function. In order to develop the dairy products and related industries, these contents should be considered when the annexed Table 14 in the Enforcement Rule of the Processing of Livestock Products Act is amended.