Fewer products for the same price: is shrinkflation legal?

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To hide the real increase in prices, manufacturers are tempted to secretly reduce the number of products offered to their customers. A practice denounced by associations and consumers but which is not illegal.

This is a difficult phenomenon to bring to light but it could affect a substantial part of the products we buy. Masked inflation or “shrinkflation” in English (from the verb “shrink”) is a well-known consumer practice in which manufacturers hide product price increases by reducing the quantity of products offered.

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In this period of inflation with rising production costs, the temptation to resort to it would be much greater. The Foodwatch association, which has been denouncing this practice for several years, unveiled this Thursday a new batch of products of concern.

Salvetat water has thus reduced the size of its bottles from 1.25 liters to 1.15 liters in 2020 and has increased its sale price by 5%. Kiri Cheese reduced the serving size of its processed cheese by 10% a year and a half ago, dropping serving sizes from 20 grams to 18 grams. Teisseire syrups, whose bottle went from 75 to 60 cl in 2020 with a sale price of more than 37%. Or the Lindt Les Pyrénéens brand, which has reduced the number of chocolates in its boxes from 30 to 24 while increasing its prices by 30%.

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2% of products affected?

It is difficult to measure the scope of this practice, the brands obviously do not communicate about the reduction in the number of products. However, according to John Plassard, a financial analyst at the Mirabeau fund specializing in the food industry, around 2% of products would be affected. Therefore, one product out of every 50 sold in supermarkets could, in theory, have seen its quantity reduced in recent months to hide the rise in price.

A practice that ulcerates consumers who have the impression when they realize that they have been deceived.

However, if this practice is widespread, there is absolutely nothing illegal about it. As long as the new weight of the product is clearly indicated on the packaging, this practice does not constitute fraud.

Articles L.121-2 and following of the Consumer Code define a deceptive commercial practice as an unfair practice “that may substantially alter the economic behavior of the consumer who is normally informed and reasonably attentive and informed. […] when they are based on false or misleading allegations, indications or statements.

The information is correct

However, the information communicated to the consumer is accurate in cases of reduction inflation.

For Foodwatch, by playing on the fact that consumers are not omniscient, brands mislead them. The association advocates a change in legislation at European level that requires manufacturers to visibly indicate changes in quantity.

Questioned at the beginning of the year on this issue by a senator, the Ministry of Economy did not follow up. Therefore, the law has little chance of changing in the short term.

Author: Frederic Bianchi
Source: BFM TV

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