Austria to Label “Shrinkflation” Starting in April

The law, passed by the Austrian parliament in Vienna, obliges retailers to display a clear notice for 60 days whenever the content of a product shrinks while the package size and price remain unchanged, Lebensmittelpraxis reports.

Retailers must use an easily understandable warning such as “Attention: Less content – higher price.” Failure to comply can result in fines of up to 15,000 euros. The legislation includes exceptions: no warning is required if manufacturers clearly indicate the reduced quantity on the packaging or if the price increase remains below three percent.

The governing parties — the conservative ÖVP, the social democratic SPÖ, and the liberal Neos — aim to curb high inflation with this measure. Shrinkflation, the practice of reducing product size while keeping prices stable, has become a growing concern across Europe. However, business representatives are skeptical. The Austrian Economic Chamber argues that the new rules will increase administrative burdens for retailers, potentially leading to further price hikes. Some chains, such as Billa, part of the Rewe Group, already provide voluntary warnings on affected products.

Similar regulations are already in place in France, Romania, and Hungary. In Germany, the governing coalition has pledged to improve transparency around hidden price increases, though concrete steps remain undecided.