France seeks to force supermarkets to tackle 'scandalous' shrinkflation
Business
France seeks to force supermarkets to tackle 'scandalous' shrinkflation
(AFP) - Shrinkflation – one of the buzzwords of 2023 – is the practice by manufacturers or distributors of reducing the quantity of a product sold without lowering the price, or even increasing it.
It is legal, if galling for consumers.
In September, France's economy minister Bruno Le Maire slammed shrinkflation as "a scam" and "scandalous".
"It has always existed but the practice is multiplying," he told news channel BFMTV.
Le Maire promised government action against what he suggested was profiteering by industrial giants.
This action will take the guise of better consumer information, with clear and precise labels on packaging to indicate that the product inside weighs less and spell out the corresponding increase in the cost per kilo.
Distributors held responsible
The French government has laid out its plans in a draft decree, recently submitted to the European Commission, that is likely to raise some eyebrows.
If the decree is approved by Brussels, it will be distributors – not manufacturers – who are responsible for adding labels to the products concerned.
That approach was "the only realistic option in the short term" under European law, according to the office of French trade minister Olivia Grégoire. A spokesperson told BFM Business that going after manufacturers themselves would have taken until 2026, "at the very least".
Instead, according to the text seen by BFM, distributors will have to directly mention any weight reduction "on the packaging or label attached to or placed near the product".
The label will have to state: "The quantity sold has been reduced from X to Y and its retail price has increased by X percent or X euros per kilo."
This information must be displayed "visibly and legibly", essentially in characters of "the same size as those used to indicate the price of the product".
Up to €15,000 fine
If and when the new rule comes into effect, it will apply to large supermarkets and hypermarkets with a sales area of 400 square metres or more.
Smaller supermarkets, general food stores and corner shops will not be affected.
Nor will the requirements apply to food sold loose or in packets of variable sizes.
Failure to comply will result in fines of up to €3,000 for individuals and €15,000 euros for companies.
Unless the European Commission objects to the draft decree, it could come into force by April 2024.
France also plans to push for European measures to tackle shrinkflation as part of a revision of the EU's consumer protection rules in 2026.
Paris hopes to ensure that "manufacturers can be held responsible for labelling obligations, which is currently not possible under current regulations", the trade minister's office said.
