One country is taking a stand against shrinkflation by making grocery stores label when products have shrunk in size, but not in price.
In April, France ordered retailers to start notifying shoppers if items on shelves had been impacted by shrinkflation.
According to a release from France’s Ministry of Finance, starting in July, a notification will have to be shown when product size has been decreased without a price cut.
The ministry noted that impacted items will need signs that read, “For this product, the quantity sold increased from X to Y, and its price in (the unit of measurement concerned) increased by …% or …€.”
The signs are to be implemented for two months after the downsized products have been placed on store shelves.
“The practice of shrinkflation is a scam. I want to restore consumer confidence. And with trust comes transparency,” stated Finance Minister Bruno Le Maire in a press release.
The practice of displaying shrinkflation signs isn’t new in France.
Shrinkflation: Carrefour met en place dès aujourd’hui des affiches sur les produits concernés – @cedricfaiche pic.twitter.com/tYlB4E2ron
— BFMTV (@BFMTV) September 11, 2023
Carrefour, a French multinational retail giant, began putting up shrinkflation labels on items last fall in an attempt to pressure food corporations like PepsiCo, Unilever, and Nestlé to address the issue ahead of contract discussions.
The stickers read: “This product has seen its volume or weight fall and the effective price from the supplier rise.”
How is Canada tackling shrinkflation?
In Canada, consumers have noticed shrinkflation impacting everything from bacon to Kraft Dinner.
Daily Hive reached out to Canada’s Competition Bureau to see what measures have been taken in the country’s retail space to combat shrinkflation.
A spokesperson from the Bureau noted that the agency published a report on its retail grocery market last summer titled Canada Needs More Grocery Competition. The report suggests implementing accessible and harmonized unit pricing to help tackle shrinkflation.
However, shrinkflation itself is also part of bigger issues with lack of competition, noted the report.
The document also makes other key recommendations to improve competition within Canada’s grocery industry, including creating a “whole government strategy” to support new grocery businesses, encouraging the growth of independent grocers and the entry of international grocers, and limiting the use of property controls that make it difficult for more grocery businesses to open.
“More competitive markets generally see lower prices, which is why this report presents recommendations to all levels of government to meaningfully improve competition in the grocery industry,” said the Competition Bureau spokesperson in a statement.
“Change will take time, and these solutions will not bring grocery bills down immediately.”
Another push to increase competition within Canada is Bill C-56, which gives the Competition Bureau more power to crack down on unfair practices by large, dominant companies that drive up prices and block collaborations that stifle competition and consumer choice.
With files from Isabelle Docto.