IACE calls for addressing shrinkflation in Tunisia

Tunis: Tunisia should adopt specific programmes to strengthen consumer protection mechanisms within its market so as to address shrinkflation, a practice wherein the size or quantity of a product is reduced while maintaining or increasing its price, said the Arab Institute of Business Leaders (IACE). Shrinkflation is a subtle form of inflation that can yield serious consequences for consumers, companies, and the economy as a whole, reads a blog published by the IACE. In Tunisia, the size of some food products, including bread, cheeses, juices and butter, have been reduced and their prices have remained the same, without consumers realising it. To this end, the IACE recommended some measures, such as creating and implementing an efficient regulatory framework requiring clear labelling for shrinkflation-affected products. "Regulations should ensure that consumers are informed of any changes in product size while keeping the same price." These measures also include launching targeted consumer education camp aigns to inform the public about shrinkage and how to recognize it. This may include working with consumer groups, media, and digital platforms. There is also need to establish a system to monitor the market regularly to identify potential shrinking cases. "By implementing these measures, Tunisia can ensure fair practices in the market, protect the interests of consumers, and promote open communication between businesses and consumers." Shrinkflation is primarily driven by rising production costs. When a product's raw material expenses increase, companies often respond by either passing the higher costs onto customers through price increases or by reducing the product's size while keeping the same price. "Ensuring transparent communication with consumers is crucial for companies contemplating a reduction in product size," the IACE said. In Europe, France has taken the initiative to address this issue, when the French Ministry of the Economy sent a draft decree to the EU in January 2024, requiring superma rkets to inform their customers about cases of shrinkflation by March. This initiative began in September 2022, when the consumer defence association "Foodwatch" was the first to alert consumers to shrinkflation citing the popular "Kiri cheese square" as a product that had shrunk from 20g to 18g. Source: Agence Tunis Afrique Presse