Kraft Singles are only about 50% cheese, so it's fair to call them "not cheese".
You can get process cheese that is actually cheese from brands such as Boars Head. The "process" part just means there's an emulsifier added so the cheese doesn't break when it melts. Despite the sciencey name, there's nothing bad about emulsifiers.
It’s just that all around the world American Cheese is now often, although wrongly, mistaken for cheddar. And most people have no idea what actual cheddar looks or tastes like.
Which is precisely what these stringent and sometimes somewhat absurd rules try to prevent.
The real crime of those slices is calling them cheese.
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