Shrinkflation in France: New Obligation to Inform Consumers

Key Provisions: The Order of April 16, 2024, on informing consumers of the price of products whose quantity has decreased, mandates that from July 1, 2024, supermarkets must inform their customers, for a period of two months, about pre-packaged products whose price per litre or weight has increased while the quantity has decreased.

Background: Despite being highly controversial, shrinkflation remained legal, skirting the boundaries of misleading commercial practices. In France, price increases are not regulated in the same way as the obligation to announce a price reduction (see Article L112-1-1 of the French Consumer Code). This practice allows distributors to conceal price increases, often unnoticed by consumers unless they carefully observe an increase in the price per kilo on the price label or a reduction in weight or volume on the product itself.

The Order of April 16, 2024, amended by the Order of June 28, 2024, now defines the applicable rules for shrinkflation practices in France. From July 1, 2024, distributors must systematically inform consumers of price increases related to reduced product quantities.

New Provisions Effective from July 1, 2024

Supermarkets with a sales area greater than 400 m², predominantly selling food products, must inform consumers when the quantity of a pre-packaged product has decreased, resulting in a price increase per unit of measurement.

The following statement must appear directly on the packaging or on a label attached to or placed near the product: ‘For this product, the quantity sold has decreased from X to Y and its price per [unit of measurement] has increased by ...% or ...€.’

For products made up of several units where the number of units has been reduced without reducing the price, distributors must display the following statement: ‘For this product, the quantity sold has decreased from X to Y units and its price per unit has increased by ...% or ...€.’

This statement must be visible, legible, and in the same font size as the unit price of the product.

Products Affected

The new provisions apply to:

• Mass-market products defined by Article L.441-1 of the French Commercial Code as ‘non-durable products with a high frequency and recurrence of consumption,’ listed by decree.
  
• Pre-packaged products with a constant nominal quantity.
  
• Products composed of several units where the number of units has been reduced without a price change, such as a batch of 8 yoghurts reduced to 6 yoghurts (see the Order of June 28, 2024).

Bulk products and pre-packaged foodstuffs with variable quantities during preparation, such as deli items, are not affected.

Companies Concerned

These provisions apply to all FMCG retailers who directly or indirectly operate a predominantly food shop with a sales area exceeding 400 square meters. This includes supermarkets and hypermarkets, but excludes small grocery stores and e-commerce sites.

For more information, the government has published an FAQ detailing these provisions.

Penalties for Non-Compliance

Distributors have two months from the date the reduced quantity of the product goes on sale to display the required information. According to a survey by UFC Que Choisir, between July 1 and 6, 95% of shops were not complying with this obligation. When compliance was observed, the signage was often inadequate. It is hoped that compliance will improve over the summer.
Failure to comply with these obligations may result in an administrative fine of up to €3,000 for individuals and €15,000 for legal entities, according to Articles L.112-1 and L.131-5 of the Consumer Code. The DGCCRF can also use its injunction powers to enforce compliance, including daily penalties. Pursuant to Article L.521-2 of the Consumer Code, any injunction may be publicized at the expense of the non-compliant party.

Consumers can report non-compliance via the SignalConso application or website if they have doubts about the price displayed on the shelf.