Manufacturers of basic and prime commodities (BNPCs) implementing shrinkflation measures – same price for reduced weight – should seek approval from the Department of Trade and Industry (DTI) or face possible penalties under the Consumer Act of the Philippines.
DTI assistant secretary Amanda Nograles told reporters in a press briefing the agency will released this month a new suggested retail price (SRP) bulletin reflecting a price increase of a range of 25 centavos to P7.25 on 63 BNPCs.
These include canned sardines, processed milk, coffee, bread, instant noodles, bottled water, processed canned meat and condiments and toilet soap, candle and battery for non-food.
Nograles said two of the 63 items sought weight reduction and corresponding price increase, a clear case of shrinkflation.
Shrinkflation is a common practice in food and beverage industries to offer a product for the same price but lesser quantity.
Nograles said the DTI has started issuing a notice of concurrence to the adjustments to give way to the price adjustments.
However, she said BNPC manufacturers implementing shrinkflation measures should file a request to the DTI and seek concurrence while informing consumers for transparency.
“(When) there is a change in the weight of the product, effectively, that is a price increase. For the same amount, you get less of the product. For products that in the SRP bulletin, that should be evaluated by the DTI,” Nograles said.
She added consumers must be informed of the change.
“There can be no misrepresentation as to the grammage. Where there is deception or misrepresentation, that is subject to penalty under the Consumer Act. They should file with the DTI, if they don’t, we will flag that; we will issue a letter of inquiry or notice of violation,” Nograles said.
She said the changes in weight should be indicated in the label and the increase in price should be not more than 10 percent so as not to be considered an act of profiteering.
