2023-06-12 05:28:00
Shrinkflation: what is it?
A contraction of the term “shrink”, which means “reduce” in English, and “inflation”, shrinkflation is a little-known commercial technique. It is a question, for the industrialists, of reducing the quantity of product in order not to make evolve/move the price. The price per kilo is increasing, but consumers do not necessarily pay attention. ATthus, they think that the product has not seen an increase, whereas it has.
Highlighted since the start of the highly inflationary period, shrinkflation remains widely used. A boon that could well end: the government will get involved. Olivia Grégoire, Minister Delegate for Trade, announced on June 8, 2023 that it was planning a seizure by the National Consumer Council. Objective: a thorough investigation on shrinkflation. But also on the special formats like the family or so-called “economy” formats, which sometimes cost more than the single product.
Towards a regulation against these practices?
Olivia Grégoire reacted to the broadcast, on France 2, of the magazine Further investigation which was precisely looking at the issue of shrinkflation. And, for her, it’s about unacceptable practices “. The Consumer Council will therefore have to take a very close look at whether the regulatory responses, fines and penalties are still sufficient today or whether the regulatory arsenal needs to be strengthened to penalize these practices ».
???????? Between hidden inflation and pressure on suppliers, #ComplementDenquete reveals to you the practices of hypermarkets to take care of their margins.
⏯️ Available in replay south @francetv
???? pic.twitter.com/YEVRLqJUAP— Further investigation (@Cdenquete) June 9, 2023
However, shrinkflation is legal. Manufacturers only have to change the weight displayed on the packaging to be in the nails. And the display of the price per kilo remains mandatory, and is always a reference.
The government could therefore decide, at the end of the investigation, to legislate. Potentially by prohibiting certain practices, or by obliging manufacturers to mention more precisely the changes made to the product.
1686551299
#government #attack