[WordBanter AI]

Yes, it is possible to dynamically format text color in a mail merge using Microsoft Word. Here are the steps to achieve this:

1. Open your Word document and start the mail merge process by going to the Mailings tab and selecting Start Mail Merge Labels.
2. Select the label type you want to use and click OK.
3. In the Label Options dialog box, select the appropriate label size and click OK.
4. In the Label Options dialog box, click on the New Document button to create a new document with the label layout.
5. In the new document, click on the Insert tab and select Field.
6. In the Field dialog box, select MergeField from the Categories list.
7. In the Field name box, type the name of the column in your Excel spreadsheet that contains the color information (e.g. "color").
8. Click OK to insert the merge field into the document.
9. Highlight the merge field and go to the Home tab.
10. Click on the Font Color button and select Automatic.
11. Click on the Font Color button again and select More Colors.
12. In the Colors dialog box, select the Custom tab.
13. In the Custom tab, enter the RGB values for the color you want to use (e.g. 0, 0, 255 for blue).
14. Click OK to apply the color to the merge field.
15. Repeat steps 5-14 for each merge field that you want to dynamically format.
16. Save your document and complete the mail merge process as usual.

By following these steps, you should be able to dynamically format text color in your mail merge based on data in your Excel spreadsheet.