What "edible" means on a glitter
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The distinction
A decorative glitter is either made of substances cleared for food use, in which case it is food, or it is not, in which case it is decoration that happens to be sitting on a cake. The word on the package does not decide which.
The grounded test
For the color component, is it listed in part 73, 74 or 82 for this use? For the substrate it is on, is that substance cleared for food? Both halves have to be answered, and a glitter is usually a color on a carrier.
Non-toxic is not the same claim
A material can be non-toxic in the sense of not poisoning somebody and still not be a food ingredient. Those are different standards with different evidence behind them, and the second is the one that applies here.
So say which one you are selling
If it is for decoration and removal before eating, say that plainly and prominently. If it is edible, be able to show the listings. Leaving a buyer to assume is how a cake decorator ends up serving the wrong one.
It is a repackager problem as much as a maker problem
Buying bulk glitter and jarring it into artist or baker sizes puts your name on the claim. The composition question travels with the product, and the supplier specification is the only way to answer it.
The same applies to cake decor and sprinkles
A sugar sprinkle colored with a listed additive is straightforward. A metallic or luster finish may not be, and those are exactly the products where the finish is the selling point.
And an allergen can be hiding in the carrier
A sprinkle or a decor piece can contain wheat, soy or milk, and the allergen rule reaches it through a coloring declaration notwithstanding any other law. The carrier is part of the composition question.