France requires supermarkets to label products with hidden price increases

The French government has ordered retailers to warn customers about products that are reduced in size but not discounted from 1 July.

The regulation, issued on April 19, requires medium and large supermarkets to notify customers when a product is reduced in size but the price remains the same or increases, a disguised price increase method used by manufacturers called "shrinkflation".

French Finance Minister Bruno Le Maire called the practice “deceptive” and stressed the importance of transparency. “Consumers must understand the real price fluctuations of products when their sizes change,” he said.

A warning label for products that have shrunk in size in a Carrefour supermarket. Photo: Reuters — A warning label for products that have shrunk in size in a Carrefour supermarket. Photo: *Reuters*

Under the new rules, retailers will have to display labels on shelves that say a product has been reduced in size but kept its price the same for two months after the change. The rules apply to a wide range of goods, including food and household items. Unpackaged food items and bulk goods are exempt.

Camille Dorioz, campaign director at consumer advocacy group Foodwatch France, welcomed the new regulation, saying it reinforced European law banning misleading packaging. "This is great news because 'shrinkflation' is deceitful and misleading," he said.

Some retailers are less enthusiastic about the new rules, saying they will be difficult to implement. Dominique Schelcher, CEO of supermarket chain Systeme U, said “shrinkflation” needs to be addressed, but the responsibility should lie with manufacturers. “Why ask retailers to do this and not ask manufacturers, who have all the necessary data?” he asked.

However, before this regulation was in place, another retailer in France had already taken the initiative to implement it. In mid-September 2023, the supermarket chain Carrefour posted a warning on 26 products with the words: "This product has been reduced in size or weight, causing the actual price to increase."

Phien An ( according to AP )

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