Government Points Out 'Consumer Deception and Tricks'... What Is 'Shrinkflation'?

Deputy Prime Minister Choo Kyung-ho: "Not an Honest Sales Practice"
Minister Jeong Hwang-geun: "Trick"
Government Begins Investigation on Shrinkflation and Strengthens Labeling Information

The government is increasing pressure on the so-called 'Shrinkflation.' Following criticism of the practice of reducing product volume while maintaining prices as 'consumer deception' and a 'trick,' it has launched an investigation into shrinkflation in major daily necessities.

On the 17th, Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, presided over the 'Emergency Economic Vice Ministers' Meeting and Price-Related Vice Ministers' Meeting' at the Korea Export-Import Bank in Seoul, stating, "There are growing concerns about covert price increases through volume reduction, the so-called shrinkflation," and added, "This is not an honest sales practice and can undermine consumer trust, so the government recognizes it as a serious issue."

Earlier, on the 14th, Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance, who visited a supermarket, also said, "I think this is not an honest sales practice." He emphasized, "Even if it is the seller's discretion to reduce quantity while keeping the price the same, it is necessary to inform consumers accurately," and added, "The Fair Trade Commission and others are reviewing measures to ensure consumers are aware when product contents change."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is inspecting the prices of major items during his visit to Emart Yongsan branch in Seoul on the afternoon of the 14th. Photo by Kang Jin-hyung aymsdream@

This government stance is similar to that of Chung Jong-keun, Minister of Agriculture, Food and Rural Affairs. Minister Chung criticized 'shrinkflation' as a 'trick' and said, "Consumer groups need to take active action." He explained, "For example, reducing the quantity from 100g to 90g and quietly changing only the labeling is a trick," and added, "Whether there is a legal issue will be discussed by government agencies, but consumer groups must actively step forward."

Price trickery is not limited to shrinkflation but also includes skimpflation and greedflation. Skimpflation refers to lowering product quality while keeping the price the same, such as when a food company mixes canola oil into olive oil. Greedflation means large corporations excessively raise prices out of greed, thereby exacerbating inflation.

The government is considering strengthening product unit price labeling information to respond to shrinkflation. This aims to improve consumers' ability to easily identify changes in product volume and other factors in response to trick price increases. A Ministry of Economy and Finance official said, "The government cannot remain idle, saying it is ineffective during the current inflationary period," adding, "As inflation is triggered, even companies without clear reasons for price increases are joining in to raise prices. This can send an indirect message to such companies and help curb further inflation."

This content was produced with the assistance of AI translation services.