From 1 July 2024, certain distributors will be required to inform their customers if the quantity of a product decreases while its selling price remains unchanged or increases, a practice commonly known as ‘shrinkflation’.
This new obligation stems from a “decree” of 16 April 2024.
Who is concerned and for which products?
The new regulation applies to:
- distributors of fast-moving consumer goods (FMCG) operating a shop with a surface area of more than 400m2 (FMCG); and
- foodstuffs and non-food products sold in constant quantities (e.g. tins, packets of rice, washing powder, etc.).
It doesn’t matter whether these are national brand or “MDD” products.
This does not apply to:
- pre-packaged foodstuffs in variable quantities (e.g. products sold on a cheese stand); or
- non-prepackaged foodstuffs (e.g. sold in bulk).
Which mention to display?
The decree specifies the wording that must expressly appear, namely:
‘For this product, the quantity sold has increased from X to Y and its price per (specify the unit of measurement concerned) has increased by …% or …€.‘ (The two values X and Y should be expressed in weight or volume, as appropriate).
How to indicate it properly?
The above information must appear in a visible and legible manner and in the same font size as that used to indicate the unit price of the product.
It must appear directly on the product packaging or on a label attached to or placed near the product concerned.
How long must the indication appear?
The compulsory indication must appear for a period of 2 months from the date on which the product concerned (in reduced quantity) goes on sale.
What are the penalties?
Any breach of this obligation is punishable by a fine of € 3,000 for an individual and € 15,000 for a legal entity, as well as a publicity measure at the expense of the professional penalized.
