Same price but less quantity. This phenomenon is known as ‘downsizing’ and is being used by some brands to cope with the rising CPI. Some companies have had to increase the price of their products due to high costs. Others are choosing to keep prices low but reduce in size.
The Organization of Consumers and Users (OCU) considers this strategy “unfair competition”. This Thursday, OCU filed a complaint against six companies in the food industry, including Pastas Gallo and Danone, Pescanova and Colacao. Further, the complaint that it will be extended is that everything suggests that it will. The organization has stated that its study has confirmed that reduflation has affected at least 7% the products in the buying basket.
The price rises in energy and raw materials have not been limited to these areas. They have spread to all of our shopping baskets, including basic products. As a result, the food cost has increased by 9.4%. This phenomenon is becoming very popular in order to not have to pass this significant increase on to customers.
The OCU believes that the regulations can be observed from the perspective of information on packaging and labeling. However, it is unfair because there is not enough information to inform the consumer about the price rises and how this affects competition. According to the OCU, a consumer doesn’t have all the information necessary to determine the true nature of the product. This can lead him to make erroneous choices that could affect manufacturers that raise prices. Manufacturers who mask increases in quantity can be penalized.
The OCU has asked the CNMC to investigate whether reduflation (giving less for the same) is a practice that could unfairly affect competition due to lack of transparency for consumers. It will also complain to the CNMC. The Ministry of Consumption will be notified so it can examine the implementation of measures that force producers to provide better information to consumers about the cost and quantity of their products.
The group, regardless of whether reduflation is legal, condemns these “opaque practice”, as it is often not obvious to consumers. This is why you should be aware of “hidden raises”.
