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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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INHERITANCE

Inheritance in Switzerland: Which country’s laws should dual nationals follow?

Switzerland has well-defined rules for inheritance and succession rights. But do dual nationals have some leeway in choosing which country's laws to follow?

Inheritance in Switzerland: Which country's laws should dual nationals follow?

First, let’s look at what Swiss inheritance / succession legislation says.

Who gets what depends on whether you have a will or not when you die (the latter’s legal term is ‘intestate.’)

If you don’t have a will, your estate will be divvied up among your legal heirs: spouse or registered partner and children.

Typically, the spouse gets half of your assets and the children the other half, to be divided equally among them.

In case you have no kids, your parents or even grandparents could inherit from you.

Next in the statuary succession rights  are siblings.

If, however, you have no living relatives whatsoever, your estate will go to the canton or commune of your last residence.

What if you do have a will?

It will give you some, though not total, flexibility in who you want to leave your assets to — and how much. 

For instance, you can choose who your heirs will be and how your estate should be distributed among them.

You can decide to give more than a half to your spouse and less to the children, or vice-versa.

However, your legal heirs — that is, spouse and children — cannot be cut out of your will altogether.

Note that this law applies to Swiss citizens only. If you are a foreign national living in Switzerland, your succession is normally governed by the laws of your country.

However, if you a long-term resident and plan to remain here permanently — for instance, if you have a C permit — you can choose the Swiss law instead of the foreign one to apply upon your death. But you must state your preference in your will.

If you die intestate, then the Swiss legislation will kick in, as it will be deemed the law of your last place of residence.

READ ALSO: 7 things you need to know about Swiss inheritance law

What about dual nationals?

At present, those who have Swiss citizenship in addition to a foreign one, must abide by Switzerland’s inheritance law only.

That’s because, for all intents and purposes (including legal ones), they are considered to be Swiss citizens only.

However, this will soon change.

On December 22nd, 2023, the parliament adopted the Federal Act on International Private Law (PILA), which will give dual nationals in Switzerland the option of basing their succession on the laws of  their ‘other’ country of citizenship.

However, in doing so, dual nationals can’t derogate from Swiss statuary succession rules — that is, they won’t be able to exclude spouses and children from inheriting their part of the estate.

The new legislation is expected to come into force on January 1st, 2025.

READ ALSO: What you should know about dying in Switzerland

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