Is the ‘shrinkflation’ law working in France?
Ten days have passed since the enforcement of a ‘shrinkflation’ law in France.
While it might feel like early days to test its effectiveness, it’s not too early to acknowledge that to truly work, retailers need to comply with the new law across the board.
But according to French consumer group UFC Que Choisir, that’s just not happening.
What is the ‘shrinkflation’ law in France?
Earlier this year, France’s Minister of the Economy, Finance and Recovery, Bruno Le Maire, announced a decree requiring French retailers to signal to consumers when a food or consumer good product had been subject to ‘shrinkflation’.
In other words, when manufacturers reduce the size of products without reducing the price, retailers must flag the change in price in relation to weight. “The practice of shrinkflation is a scam!” said the minister when announcing the decree. “We are putting an end to it. I want to restore consumer confidence. And with trust comes transparency.”
The announcement followed the publication of a ‘shrinkflation’ list shared by multiple media outlets, including French news broadcast television and radio network BFM TV. The list included products by well-known brands Lay’s, Doritos, Magnum, Carte d’Or, and Findus.
Are retailers complying with the ‘shrinkflation’ law?
How do retailers signal 'shrinkflation' to consumers?
The following statement must be indicated: “For this product, the quantity sold increased from X to Y and its price (in the unit of measurement concerned) increased by…% or …€.”
Within the first ten days since the ‘shrinkflation’ law was enforced, UFC Que Choisir has done the rounds to investigate retailer compliance. A total of 423 supermarkets and hypermarkets were examined, with the consumer group finding that 95% of stores featured no displays.
Indeed, only three retail groups appear to have complied: Coopérative U, E.Leclerc, and Carrefour.
The consumer group not only takes issue with the lack of retailers adhering to ‘shrinkflation’ signposting, but also to the way they’re displayed – when displayed at all. Not all information is present 100% of the time, with the difference in packaging size or price increase sometimes missing. Occasionally UFC Que Choisir noted obvious errors in the ‘shrinkflation’ displays.
Of course, there is room for error in the early days. But if a retailer knows how to communicate product promotions, then perhaps getting the ‘shrinkflation’ displays right is not an unsurmountable hurdle.
This UFC Choisir’s perspective: “Distributors know how to communicate…promotions. Much less so when it comes to informing their customers of unpleasant information, such as price increases on the shelf.”
