Spain: New legislative proposal to prevent "shrinkflation"

In brief

A new legislative proposal is being discussed in Spain to modify the Spanish Consumer Law to prevent "shrinkflation". "Shrinkflation" is the commercial practice of reducing the size or quantity of a product while maintaining or increasing the price. Companies will have to inform consumers whenever they use this commercial practice. 


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In more detail

"Shrinkflation" has been used in economics to describe a situation where the size or quantity of a product diminishes, while the price is the same or even increases. This commercial practice might be deemed to be deceptive and unfair to the market, especially to consumers. In particular, it may contravene the provisions of Directive 2005/29/CE on misleading commercial practices in a business-to-consumer (B2C) context, since consumers may be led to purchase a product that they would not have purchased otherwise.

Based on that, the Spanish legislator has considered the need to propose a modification of the Spanish Consumer Law, i.e., Royal Legislative Decree 1/2007, of 16 November, approving the revised text of the General Law for the Defense of Consumers and Users. According to the proposed modification of the Spanish Consumer Law ("Proposal"), Article 20.1 will be amended as follows: Consumers will have to be informed in clear terms whenever there is a reduction in the quantity of pre-packaged products presented in the same or similar packaging, resulting in an increase in the price per unit. Consumers will have to be informed of the reduction in product quantity and the corresponding increase in price for a minimum of 90 days.

In any event, as anticipated, this Proposal is still in the early stages of the Spanish legislative process. It has not yet been approved, and further changes may be introduced.

For more information or tailored advice for your company, please contact our team of experts.


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