Retail and Consumer

"Shrinkflation": new rules and implications in Italy

Published on 19th Feb 2025

On 1 April 2025, the provision aimed at hindering the phenomenon of so-called "shrinkflation" – reducing the size or weight of a product while keeping its price unchanged – will enter into force in Italy. But uncertainty surrounds the new provision that appears to have been adopted without notifying the European Commission 
Retail transaction, customer paying on payment card reader

What does the rule provide?

Article 15-bis "Repackaging of pre-packaged products" – which has been newly inserted into the Italian Consumer Code by Law no. 193/2024 'Annual Market and Competition Law 2023' – provides as follows

"1. Producers who place on the market, also through distributors operating in Italy, a consumer product which, while maintaining the previous packaging, has undergone a reduction in the nominal quantity and a correlated increase in the price per unit of measurement dependent on them, must inform the consumer of the reduction in quantity by affixing in the main visual field of the sales package or on an adhesive label the following wording: "This package contains a product that is X (units of measurement) less than the previous quantity.
2.The information requirement referred to in paragraph 1 will apply for a period of six months from the date on which the product concerned is placed on the market.
3.The provisions of this Article will apply as from 1 April 2025".

In concrete terms, therefore, the article imposes an additional (and temporary) information obligation on producers of essentially all consumer goods.

They must adequately point out to consumers that the package they are purchasing contains a smaller quantity of product than the same package purchased previously.

Application of the rule

Given the literal wording of the provision – "while maintaining the previous packaging" – it seems reasonable to assume that the obligation only arises if the packaging in which the products are marketed has not undergone any "significant" change.

In other words, if the reduction in the quantity of the product is accompanied by a graphical or compositional change on the packaging, the producer would not seem to be obliged to provide additional information to the consumer (the same applies if the product is modified). Returning to the obligation, this is satisfied by affixing the wording required by the provision on the packaging.

There are no indications as to the layout, font size or colours. The provision in question only requires the sign to be placed in the "'main visual field"'. It seems, however, reasonable to assume that the font size and graphics must be such that they can be easily read and understood by the consumer, without altering the communicative structure of the packaging.

The obligation to inform consumers applies for a period of six months from the date of placing the product in question on the market.

Sanctions and supervision

Given the location of article 15-bis within the Italian Consumer Code, there do not appear to be any specific sanctions in the event of breach of this obligation. It is reasonable to assume, however, that the Italian Competition and Market Authority may consider tracing the violation to an unfair commercial practice and consequently apply the relevant sanctions.

The Italian Authority has already shown an interest in this phenomenon – for example, the "PS12572 - Polifra-Monorotolo DELJS " case – and is likely to maintain its attention on it. In this regard, the fact that the legislator made a precise choice in deciding not to include the case in question among unfair commercial practices does not appear to be decisive.

Uncertainty around the new provision

The new provision may be short lived, as it would appear to have been adopted without complying with the so-called TRIS, or Technical Regulation Information System, procedure, as set out in Directive (EU) no 2015/1535.

In essence, the current text of the provision would appear to have been adopted without first being notified to the European Commission and, consequently, receiving the required opinion.

Osborne Clarke comment

According to settled case law of the European Court of Justice, non-compliance with the TRIS procedure may lead to the non-application of the rule in question by national courts.

Moreover, this exposes Italy to possible infringement proceedings as article 15-bis could create barriers to the free movement of goods in the internal market. 
 

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* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

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