France declares war on shrinkflation with new supermarket rules

The French government is taking a stand against unfair practices by food manufacturers, mandating supermarkets to notify customers when a product's weight is reduced without a corresponding drop in price. "We want to rebuild consumer trust," explained Finance Minister Bruno Le Maire.

This move targets the pervasive issue of shrinkflation, where consumers receive less of a product for the same price, which has been a problem in France for years. With food prices soaring by up to 16 per cent last year, the government has opted for strict regulations to combat this issue, as reported by Reuters.

Starting July 2024, French retailers must display the prices of food items and cleaning products over two months, highlighting any unit price changes. Take chocolate, for instance: customers will see how much 100 grams cost in August compared to October, making price hikes more apparent. Currently, if a product's weight is reduced—from 7 ounces to 6.3 ounces—while its price stays the same, many consumers don't notice the effective price increase.

In 2023, Carrefour started alerting customers to such price tactics in France by tagging products from major producers like Unilever, Nestle, and PepsiCo with price warnings.

"Shrinkflation is a scam, and we're going to put an end to it. I aim to rebuild consumer trust, which goes hand in hand with transparency," Finance Minister Bruno Le Maire asserted, as quoted by the agency.