Consumer NZ is calling for “a stronger response” to shrinkflation and other issues shoppers face.
Calls are getting louder for businesses and the Commerce Commission to take action against the growing trend of “shrinkflation”.
Consumer NZ wants businesses including supermarkets to be up front about the issue, where products and portions are deliberately reduced in size, while the prices remain the same.
The consumer watchdog also said there needed to be a stronger response to address issues shoppers faced in order to uphold consumer trust and choice.
Consumer’s research and test writer Belinda Castles said the quiet downgrading of products “is a choice companies make”.
While the practice wasn’t illegal, it could be another blow to people’s budgets, she said.
“There’s nothing stopping companies from reducing the size of their packaging by stealth.”
But Castles believed those changes should be communicated to customers via their websites or social media channels to ensure they were not being misled about products.
“Instead, consumers are left to use unit pricing to identify if products have shrunk in size or to get the best price.”
The Northern Advocate reported in June many shoppers felt they were getting less bang for their buck at the supermarket and some eateries.
Northlanders noticed food portions at some cafes were smaller, the shrinking of packets of biscuits and chocolate bars, and coffee being served in smaller cups, while prices were the same as a regular or large cup.
The Commerce Commission has received five inquiries in the last two years that mention “shrinkflation”, whereas Consumer NZ said people had been complaining to them about it for several years.
Former MasterChef NZ winner, Northlander Aaron Brunet, said he’d noticed shrinkflation along with “prices going up and up and up”.
“Food packets that were 500g before are now 450g, or a packet of something that had 12 in it now has 10.
“Even with eggs, there are now cartons with 10 eggs rather than 12.”
Brunet, a passionate foodie who runs a Mexican food stall at the Kerikeri Packhouse Market, said shrinkflation was a common topic around town.
He said people mostly talked about the cost of living and how food was a lot more expensive.
“But a lot of people say the packets are smaller than they used to be – it’s a common comment.”
Brunet said he understood why some manufacturers had cut back to keep prices similar so it was not a shock to people.
“They’re not being dishonest, they’re just not being extremely upfront – there’s honest information on the labels, but it’s up to us to read the labels and price tags.
“Overall, it’s confusing; you really have to have your wits about you when shopping.”
Castles said supermarkets should be upfront about the changes on shop shelves.
In 2023, a French supermarket chain put warning labels on shelves advising customers when a product had shrunk in size, she said.
The Australian Competition and Consumer Commission recommended, in its supermarket inquiry, that consumers be notified on shelves and on product webpages when shrinkflation occurs, Castles said.
She urged the Commerce Commission to adopt something similar here.
The commission is the Crown entity responsible for protecting consumers and can enforce laws against misleading and deceptive conduct.
“We know it can be done,” Castles said.
Commerce Commission fair trading and credit general manager Vanessa Horne said businesses were free to set their own prices.
“They cannot make misleading or deceptive claims related to pricing, as it could be a breach of the Fair Trading Act,” she said.
“Businesses also must not make false or misleading representations that goods are of a particular quantity.”
Horne said it was mandatory for unit pricing to be displayed for regulated grocery products.
This could “help consumers compare prices for goods of differing sizes and make informed choices when shopping”, she said.
The Commerce Commission did not respond directly to questions about whether it would take action on the issue, whether it would adopt measures similar to Australia’s, or whether shrinkflation had become the new norm in New Zealand.
Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with finance, roading, and animal welfare issues.