As of: February 22, 2024, 9:30 a.m
By: Julia Hanigk, Vivian Werg
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Consumers not only have to contend with inflation, but also with hidden price increases.
However, a recent court ruling could be a turning point.
Munich – Daily shopping in the supermarket is now quite expensive for consumers.
Inflation and increased energy and raw material costs are driving up product prices.
According to a survey by the accounting firm
Deloitte,
many consumers are having to significantly reduce their spending on food due to increased prices.
Anger over “shrinkflation”: Manufacturers increase prices, but product content remains the same
Manufacturers not only visibly increase prices, they also use a trick.
Consumers are increasingly annoyed by hidden price increases, known as “shrinkflation”.
What's behind it: Consumer advocates report that many manufacturers camouflage increased prices by simply reducing the content of their products while keeping the selling price and packaging size the same.
A so-called “deceptive package”, for which consumer advocates have already given out advice on how to recognize it in the supermarket.
An example of this is the Sanella spreadable fat.
In the summer of 2022, the Upfield company reduced the capacity of a Sanella product by 100 grams.
Instead of the usual 500 grams, only 400 grams of Sanella were put into the same cup.
The Hamburg consumer advice center saw this as misleading consumers and successfully sued Upfield.
A clear success for consumer protection.
Deceptive package: Hamburg consumer advice center sues over hidden price increases – and wins in court (symbolic image) © Manfred Segerer/ Imago
Consumer advice center sees “clear case of misleading”
In a statement, the Hamburg consumer advice center said: “If there is suddenly 100 grams less spreadable fat in the identical cup without any additional information, this is a clear case of misleading for us.
We are pleased that the court followed our opinion with its groundbreaking ruling.
Accordingly, manufacturers are no longer allowed to simply sell less content in packaging of the same size without pointing out the smaller capacity.”
Hauke Reinhardt from the law firm Burchert and Partner Rechtsanwälte, which represented the Hamburg consumer advice center in this case, commented: “It is the first time that a court has spoken out against this form of deceptive packaging and a first stage victory for more consumer protection.”
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Complaints about “shrinkflation” are on the rise
Despite the successful ruling, consumer advocates report an increasing number of complaints about manipulation of packaging sizes.
The “affected products have often become 20 percent more expensive due to the reduced filling quantity, some even by more than 75 percent.”
The so-called “shrinkflation” is particularly observed in certain product categories.
Although misleading information or deceptively large packaging is prohibited according to Section 43 Paragraph 2 of the Measurement and Calibration Act, according to consumer advocates, the law lacks “concrete provisions as to when a deceptive package is considered”.
Although the Food Information Regulation prohibits “misleading information about food, including quantity”, complaints must always be considered on a case-by-case basis.
(vw/yh)
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