Supermarkets Urged to Disclose Product Downsizing Amid ‘Shrinkflation’ Concerns
Shrinkflation occurs when the size or quantity of a product is reduced while prices remain unchanged.
Choice, an advocacy group, believes that supermarkets should be required to disclose instances of shrinkflation to warn consumers.
Shrinkflation happens when the size or quantity of a product decreases while the price stays the same, often due to rising inflation and costs forcing businesses to make adjustments.
Rosie Thomas, campaigns director at Choice, pointed out that while unit pricing helps compare products, not all information is easily accessible to the public, especially for the visually impaired.
Choice suggested following the lead from Europe, where supermarkets voluntarily started notifying customers of product size reductions.
In Spain, shrinkflation has been deemed unfair competition, prompting the competition regulator to mandate supermarkets to disclose such changes.
Supermarkets in Australia have been scrutinized for potential price gouging this year, with Coles and ALDI responding that rising costs across the economy have influenced prices.
Researchers have proposed displaying “per-serve pricing” as an alternative to traditional per-unit pricing labels to help customers make better purchasing decisions based on serving sizes.
The tool, developed by Monash Business School, Deakin University, and Ritchies Supermarket, aims to simplify grocery shopping by providing clearer pricing information to consumers.
