France’s Ministry of Economics, Finance, and Industrial and Digital Sovereignty has mandated that retailers in the country must now disclose which food and drink products have been impacted by shrinkflation, effective from 1 July. The move comes after proposals were submitted to the EU earlier this year. Large and medium-sized stores, such as supermarkets, will be required to display in-store signage informing consumers about products that have decreased in size. This information must be visible within two months of the product’s marketing date. However, pre-packaged foods are exempt from this requirement.
Bruno Le Maire, France’s Minister of Economy, Finance and Recovery, emphasized the importance of combating shrinkflation, labeling it as a scam that erodes consumer trust. He stated, “From 1 July, it will be mandatory to indicate when a food product changes size, including the price per weight evolution. Consumer confidence is built upon transparency, and it is our commitment to deliver on this promise.”
Despite the government’s efforts, some retailers have raised concerns about the new law, arguing that manufacturers should bear the responsibility of reporting shrinkflation instead of retailers. In a post, Dominique Schelcher, the CEO of Système U, expressed confusion over the decision and highlighted the potential challenges for retailers in implementing the requirement.
In a separate development, French nonprofit organization Foodwatch criticized certain brands for “cheapflation,” where ingredients are substituted for cheaper alternatives. Brands like Fleury Michon, LDC, and Siggi’s were called out for modifying their recipes without proper disclosure, leading to an increase in prices without consumers’ knowledge.
The new legislation follows a recent pricing dispute between PepsiCo and Carrefour, resulting in the removal of PepsiCo products from European shelves. The resolution of this conflict marked an important step in the ongoing efforts to ensure transparency and fair pricing in the food and beverage industry.
In conclusion, the French government’s initiative to address shrinkflation is a significant step towards promoting consumer awareness and transparency in the market. While challenges may arise in its implementation, the ultimate goal of restoring trust and integrity in the industry remains paramount.
