MFG rejects state labeling requirement for shrinkflation”!

MFG rejects state labeling requirement for shrinkflation”!

On April 24, 2025, the MFG rejected an application in the Committee for Health and Social Affairs for mandatory labeling of changes in filling quantities while maintaining the same price. This reports OTS. The MFG is critical of the labeling approach and emphasizes that consumer protection should not be strengthened through new legal requirements, but rather through market transparency and political honesty.

The practice of “shrinkflation” is criticized by the MFG, but the proposal submitted is seen as symbolic politics that ignores the real causes of the problem. The SPÖ and the Greens are calling for state coercive measures, which the MFG sees as harmful. Instead, the MFG relies on personal responsibility and voluntary solutions to address the inflationary tendencies in the economy.

Shrinkflation at a glance

Shrinkflation, a combination of “shrink” and “inflation,” describes the practice of reducing the size or quantity of a product during a period of inflation while keeping the price the same. Consumers often find this development to be an advantage because it allows them to purchase products at the same price as last year, while prices for other goods increase. Economicsonline introduces new types of shrinkflation that are widespread in the food and beverage industries and can affect both product quality and quantity.

An example of shrinkflation is when a chocolate bar is reduced from 60 grams to 55 grams without the price increasing. This hidden form of inflation is not illegal as the packaging still states the weight or volume. However, critics call it an unfair and misleading practice that influences consumer perception.

Discussion about solutions

The MFG calls for an honest debate about the true price drivers, which it sees in political mismanagement, energy policy and CO₂ taxes. According to the MFG, legal labeling requirements would entail additional requirements for producers, especially for small and medium-sized companies, which could have a negative impact on final prices. Therefore, the MFG suggests alternatives to improve the situation:

• Freiwillige Selbstverpflichtungen statt staatlicher Zwangskennzeichnung
• Stärkung des Wettbewerbs für faire Angebote
• Verbraucherbildung durch Eigeninitiative
• Politische Aufarbeitung der Ursachen von Teuerung und Vertrauensverlust

In the current debate about shrinkflation, the quality of modern products is also being questioned. Startuptalky points out that consumers often feel that quality has dropped. This often happens despite technological advances that should normally increase quality. A decline in product quality can, among other things, lead to a loss of trust.

In conclusion, shrinkflation represents a complex challenge that not only has an immediate impact on price transparency, but can also have long-term consequences for consumer trust in brands. The MFG positions itself clearly against state tutelage and instead calls for more personal responsibility and market transparency in order to meet the needs of consumers.