Manufacturers may soon be required to put an additional mandatory label on their products to indicate “shrinkflation” or a reduction in the volume or weight to keep prices stable, the Department of Trade and Industry said.
DTI Assistant Secretary for Consumer Protection Group Amanda Nograles said they are looking at several models from other countries for ways to alert consumers of shrinkflation as part of consumer protection efforts.
“We are actually assessing various means to inform, if not protect, consumers from shrinkflation,” she said.
The DTI earlier said shrinkflation, a form of price increase, was justified for certain goods as manufacturers need to cover the rising costs of inputs.
The Philippine Amalgamated Supermarket Association said they are amenable to the requirement to put a notice on the size or weight reduction of some products.
Nograles said the DTI may craft a policy for a mandatory sign that will alert consumers of any adjustment in the volume or weight of the product.
She said manufacturers and producers must inform the DTI about any changes in the products whether in weight or in pricing, especially for basic necessities and prime commodities (BNPCs) monitored under the Price Act.
BNPCs that are included in the Suggested Retail Price (SRP) Bulletin are required to file a petition to the DTI or CPG if they are seeking price adjustments.
Under the Price Act, consumers must be informed of the change, and there can be no misrepresentation or deception.
Shrinkflation has been observed in the country as the economy struggles to recover post-pandemic.
It has become rampant in other countries as well – with experts saying it is not just a trend but a permanent hit on everyone’s pockets.
Consumers do not always see the changes immediately as these are sometimes incremental. In a BBC report, Phil Lempert, food industry analyst and editor of SupermarketGuru, said consumers adapt to the changes given that they do not have a choice.
He also observed that brand loyalty has plummeted amid shrinkflation, with people often transitioning to cheaper brands for non-essentials.
