Shrinkflation record: How to protect yourself from hidden price increases

Shrinkflation record: How to protect yourself from hidden price increases

According to a report by www.n-tv.de,

Consumer advice centers report that the number of “deceptive packages” in German supermarkets is at a record high. These “cheat packages” occur when manufacturers reduce product size while the price stays the same or even increases. This phenomenon is called “shrinkflation.” The Hamburg Consumer Center has recorded a record number of 104 new products that use this practice. This indicates a deterioration in consumer purchasing power.

The effects of “shrinkflation” can be diverse. On the one hand, consumers suffer from a hidden price increase because they have to pay the same or higher price for less product content. This can lead to an increase in the cost of living and put a strain on the household budget. On the other hand, this approach leads to a loss of consumer trust in the brands and products concerned.

For the market, “shrinkflation” means that consumer trust in the brand or product can be affected. This could lead to a decline in sales and long-term damage to the manufacturer's reputation. Additionally, increased regulation and labeling of products could lead to higher costs for manufacturers and retailers, which could ultimately impact consumer prices.

To counteract this, consumer advocates are calling for new legal requirements that would prohibit manufacturers from reducing the contents of their packaging without making a corresponding price adjustment. The introduction of legal regulations could lead to improved transparency for consumers and better protect them from deception.

Companies that practice “shrinkflation” justify this practice by citing increased costs along the supply chain. Some supermarkets are already testing labels to warn consumers of hidden price increases. However, it remains to be seen whether and when new legal regulations will be introduced on this topic and what effects they will have. Until then, it is advisable for consumers to pay close attention to product sizes and prices when shopping.