Countermeasures to Prevent Deceptive Practices Amidst Shrinkflation.

In Korea, deceptive practices involving shrinkflation, where product capacity is reduced while maintaining the same price, are on the rise. In response, the government has decided to expand the mandatory unit price display for more product categories and extend it to online platforms, ensuring consumers have clear pricing information.

 

In summary, the government is taking a strong stance against practices that reduce product volume while maintaining prices to protect consumer interests.

 

Government Response Strategy

On the 13th, the government, led by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, held an emergency economic ministers meeting to announce plans to enforce mandatory labeling of changes in product packaging volume. They plan to expand the range of items subject to mandatory unit price display, adding instant foods, cup noodles, and hygiene products to the existing 84 categories. Additionally, the government intends to introduce unit price display regulations for online stores.

 

Changes in Unit Price Display

To enhance consumer awareness, the method of indicating product packaging volume will undergo changes when unit prices increase. The new approach involves displaying both the original and adjusted volumes together, providing consumers with clear information. Furthermore, if there are changes in a product's volume, specifications, or ingredients, businesses may be required to notify consumers in advance to prevent unfair practices.

 

Cases Suspected of Shrinkflation and Price Increases

A Fair Trade Commission investigation revealed that among 209 processed food items, the volume of 19 products from three categories decreased in the past year. Notable examples include Honey Butter Almonds, Grilled Vienna Sausages, and Cheddar Cheese. The government plans to strengthen its monitoring system in response to cases of reduced volume reported to the Shrinkflation Reporting Center.

 

Additional Government Responses and Strengthened Surveillance

The government plans to expand the monitoring of essential goods, increasing the number of monitored items from 128 products (336 items) to 158 products (over 500 items). They will also introduce unit price display regulations for online shopping malls to facilitate information verification for consumers. Stringent sanctions will be imposed on manufacturers found guilty of shrinkflation, and the scope of online mall expansion will be finalized based on stakeholder opinions.

 

Transparency in Food Product Names and Ingredient Quantities

Another proposed measure is to disclose information when the quantity of ingredients used in a product's name changes. This will only apply when there are applicable standards, ensuring consumers have clear information when making product choices.

 

In summary, the government is taking a strong stance against practices that reduce product volume while maintaining prices to protect consumer interests. Through future policy announcements and enhanced surveillance systems, efforts will be made to ensure consumers can make informed choices in a fair market.