Lidl, HOFER, SPAR Prepare for New Law Exposing Smaller Products
Austria will introduce a new law in April to combat “shrinkflation” (hidden price increases), requiring supermarkets to clearly warn customers when product sizes are reduced without lowering prices.
The so-called “Anti-Deceptive Packaging Act” (law against misleading packaging) has now been officially approved. It aims to expose products that become smaller while maintaining or increasing their price. Retailers must display a warning directly on the product, shelf, or nearby, and the notice must remain visible for at least 60 days. The law applies to stores larger than 400 square meters or chains with more than five branches.
BILLA has already implemented the system since January 2026, offering an early example of how the law will work. Labels are placed on shelves next to prices, alerting customers when product sizes have been reduced. Several items, including coffee products, have already been marked under this system.
Lidl confirmed it will follow the new rules and emphasized that customers should not feel misled. The company believes such changes should ideally be visible on product packaging itself, as responsibility lies with manufacturers. Nevertheless, Lidl will place required warning labels on shelves in its stores.
HOFER stated that most of its products are private labels, where clear pricing and transparency are already a priority. If shrinkflation occurs, the company will comply with the law by displaying notices through its electronic price tags, while aiming to avoid such practices entirely.
SPAR also intends to prevent shrinkflation rather than simply label it. The company said it will negotiate strictly with suppliers to stop any reduction in product sizes, especially for branded goods. Ideally, SPAR hopes that no warning labels will be needed if such practices are avoided.