In the wake of “shrinking products” – Hungary leads the way in shrinkflation regulation

By: Trademagazin Date: 2025. 06. 17. 12:29

DLA Piper’s latest report, the International Shrinkflation Guide, provides a comprehensive picture of how countries around the world are responding to the phenomenon of “shrinkflation” – the practice where manufacturers of consumer goods reduce the size or quantity of products while keeping the price the same. The regulatory environment is extremely fragmented, but Hungary is one of the most advanced of the 26 countries examined, the report reveals*. Zoltán Marosi, partner and co-head of DLA Piper Hungary’s competition law group, has prepared a summary of the regulatory practices of each country and the unique Hungarian approach at a global level.

International outlook: same phenomenon, different reactions

According to the report, four countries, Italy, France, Romania and Hungary, currently have specific regulations in place, and nine more countries have official recommendations or are in discussions about regulations. In the UK, the new legislation is expected in October 2025, and in Spain, there are active discussions on legislation. However, the nature of shrinkflation regulations varies significantly from country to country: while some countries require manufacturers to provide specific information on packaging, others only require retailers to make unit prices visible and comparable.

In France, regulations have been in force since 1 July 2024, affecting retailers with a sales area of at least 400 square metres. In their case, they must draw consumers’ attention to the reduction in size on the packaging or on a label placed in the immediate vicinity of the product for two months from the date of placing the new (i.e. typically reduced) packaging on the market. Failure to do so may result in a significant administrative fine of up to €15,000. In Italy, a regulation is expected to come into force in October this year that will only allow the reduction of product quantities if the manufacturer clearly indicates this to consumers on the product packaging, using a specific text.

In Australia, the government plans to tighten the Unit Pricing Code, which requires retail chains to display unit prices. According to a report published by the Australian Competition and Consumer Commission (ACCC) in March 2025, the current unit pricing system is not sufficient to transparently address shrinkflation, as consumers often do not remember the unit prices even for regularly purchased products and do not consciously monitor the size of products (or changes in them), especially if there is no price change.

“These examples clearly show that shrinkflation is not only an economic issue, but also a legal and ethical one. Companies must not only adapt to local regulations, but also proactively communicate with consumers to maintain trust in their brands,”

said Zoltán Marosi, partner and co-head of DLA Piper Hungary’s Competition Group.