Does the Commerce Commission need to step in as consumers face hidden price hikes? – Editorial
Shrinkflation appears to be creeping into New Zealand supermarkets and retailers. Photo / Getty Images
THE FACTS
- The practice of shrinkflation is legal in New Zealand.
- The tactic is not new but has been trending up, according to Consumer NZ.
- Shrinkflation is said to be a business’ way of managing costs without price hikes for consumers.
An insidious transformation is taking place in our shopping aisles and local eateries, and it is going unchecked.
Packets of biscuits and chocolate bars are getting smaller but the price remains unwavering.
Our marmalade jars are emptying quicker. Coffee cups appear to have shrunk but the cost mimics that of a regular or large cup.
Shrinkflation was dragged out of its subtlety this week by the Northern Advocate, which reported it was becoming more common.
The phenomenon is when businesses or companies lessen a product’s size or quantity while maintaining the price tag.
Consumer NZ says while the practice is nothing new, it is growing in trend.
The country’s leading economic consultancy, Infometrics, softened the blow by saying it doesn’t believe shrinkflation is widespread – yet.
What is troubling is that the tactic goes unnoticed on our bills until someone, like those Northlanders, point it out. By then it seems to be our new normal.
A 2023 Global Inflation Monitor survey of 33 countries cited 46% of consumers said they had noticed shrinkflation.
New Zealanders appear slightly more switched on as 55% of us had noticed the tactic.
Shrinkflation is said to be a response by businesses grappling with cost-of-living pressures. Retailers face rising costs of ingredients, packaging, and transport.
The tactic is their way of surviving the economic landscape without horrifying shoppers with rising costs.
Whatever the intention, don’t be deceived. Shrinkflation is a disguised price hike. And where is the line?
We live in a country where the cost of living is a major pressure point for the everyday person. How are lower-income households who already make a dollar stretch a mile supposed to effectively budget given shrinkflation’s deception?
More importantly, who is looking out for them?
Shrinkflation side steps New Zealand’s fierce consumer protection laws as the products are technically what they say they are, just less of.
Businesses downsizing by stealth is legal but that does not mean it is acceptable.
With our pockets thinning even more, now would be a good time for the Commerce Commission to home in on shrinkflation and demand transparency.
Clear labelling would be a start so that the average shopper isn’t having to decipher unit pricing to work out whether they are getting bang for their buck.
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