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COST OF LIVING

‘It is deceit’: Are Swiss retailers shortchanging consumers?

You may or may not have noticed it when you shop, but many products in Swiss supermarkets have got smaller, while their price has remained the same. What is this about?

‘It is deceit’: Are Swiss retailers shortchanging consumers?
Coke bottles have gotten bigger again. Photo: Karolina Grabowska on Pexels

The simple answer to this question is ‘shrinkflation’, which happens when consumers receive less product for the same price.

These products have ‘shrunk’ either in terms of weight or volume, but the price remains the same.

To be fair, this phenomenon is prevalent in many countries, and not just in Switzerland.

Now a new analysis carried out by a Foundation for Consumer Protection (SKS) jointly with public broadcaster SRF, shows how large Swiss distributors like Migros and Coop play their part in this practice.

Many price increases are so subtle that shoppers may not even notice them, according to SKS head Sara Stalder.

“Retailers like to publicise price reductions, but increases are very well concealed,” she said.

“In the criminal sense it is not fraud, but it is certainly deceit.” 

Size matters

So which products have been hit by shrinkflation? These are just some of the study’s findings:

Kiri cream cheese

A pack has lost weight: from 160 to 144 grammes, to be exact, while its price hasn’t budged, which means an 11-percent price increase.

Margarine

The study focused on the Becel brand, the tub of which is now 25 percent smaller.

However, it costs the same as before — which also translates into an 11-percent price hike.

Frozen fish

Although it still costs the same, a pack of Bordelaise-style fish filet from Findus sold at Manor supermarkets now weighs 400 grammes — 20 grammes less than previously.

Tampax tampons

Instead of 22 tampons per pack, there are now only 20 for the same price, which means consumers now have to pay 10 percent more for this product.

But the shrinkflation phenomenon doesn’t only reduce the size of the product sold in supermarkets; it also means manufacturers resort to using cheaper raw materials to cut costs.

One such example are Milka biscuits, which were previously made with sunflower oil, but now the less expensive palm oil is used in the production process.

This kind of ingredient switch “is common,” Stalder said.

Can consumers do anything to counter shrinkflation?

There is at least one instance where consumers were able to force the manufacturer to backtrack.

A few years ago, Coca-Cola bottles were downsized,  from 500 to 450 millilitres, while the price stayed the same.

Faced with a massive criticism, the company backed down and re-introduced the ‘old’ bottles. 

And retailers can have a say too.

For example, Migros and Coop which, like Manor, also sell Bordelaise fish, adjusted its price downwards when the weight dropped.

“This shows that lower prices are possible,” Stalder said. “Big retailers are more powerful than they pretend. They can negotiate better prices.” 

READ ALSO: What will be cheaper and more expensive in Switzerland in 2024?

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MONEY

Do adult children in Switzerland have to support their parents financially?

Usually, it is the parents’ responsibility to ensure their kids are well taken care of financially. But can Swiss authorities force the children to return the favour in times of need?

Do adult children in Switzerland have to support their parents financially?

In most cases, once children are grown up and out of the house, they are (or at least should be) self-sufficient in terms of finances.

Parents too should breathe a sigh of relief that they are no longer obligated to pay for their children’s expenses, except perhaps for giving them some money here and there as a gift.

This is what happens in the best-case scenario.

But what if things don’t go according to this plan — for instance, if the parents find themselves in financial straits and can’t  afford to pay their bills?

Family obligations

Generally speaking, the truly needy people who don’t have enough income to pay for their basic living expenses will receive financial help from the government, in the very least in the form of the health insurance and housing subsidy.

READ ALSO: Can I get financial help in Switzerland if I’m struggling to pay the bills?

However, before doling out public money, authorities will see whether relatives should be made to help the struggling individuals pay their bills.

(In this context, ‘relatives’ means only those in the direct line of descent: grandparents, parents, and children.)

They will do it by checking the tax status of these relatives — how much they earn and what other financial assets they have — to determine whether, and how much, they should be paying toward their parents’ expenses.

Obviously, you will be expected to pay up only if your own financial situation allows it; you will not be forced to part with your money if you have very little of it yourself.

 ‘Favourable financial circumstaces’

Based on a Federal Court ruling, if the adult child  lives in ‘favourable financial circumstances’ they are required to help out their struggling parents.

The Court defined ‘favourable financial circumstances’ as income and assets allowing a comfortable life.

‘Comfortable life’, in turn, was defined by the Swiss Conference for Social Welfare (SKOS), as a taxable annual income of 120,000 francs for a single person, and 180,000 francs for married couples.

“If you have minors in your household, the limit is increased by 20,000 francs per child,” according to AXA insurance.

It goes on to say that you can deduct an exempt amount from your taxable assets.

“Your annual depletion of assets is deducted from the remaining amount. This means that if you are obligated to provide financial support, you are permitted to use part of your assets yourself each year; you don’t have to devote your entire assets to providing support.”

At between 18 and 30 years of age, this is 1/60th per year; from 31 to 40, 1/50th per year; 41 to 50, 1/40th per year; 51 to 60, 1/30th per year; and from the age of 61,1/20th per year. 

Are there any exemptions to these rules?

Aside from not having sufficient funds, you could be exempted from paying if, say, your parents, or parent, have not lived up to their own financial obligations toward you.

In Switzerland, parents are required to  provide financially for their children until the age of majority, and even beyond that if they are still studying or undergoing vocational training — typically, until the mid-20s.

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