Manufacturers free to resize products, but must inform consumers – CAK

Manufacturers are free to reformulate or resize their products to meet commercial realities, the Competition Authority of Kenya has said.

However, they must clearly label, communicate and disclose such changes to consumers.

CAK director general David Kemei yesterday said the problem arises when consumers are not adequately informed that a product has changed, leaving them with the impression that they are receiving the same value as before.

“The concern from a consumer protection standpoint arises where such changes are inadequately disclosed to consumers, such that they are intentionally or unintentionally misled into believing they are receiving the same value as before,” Kemei told the Star.

His remarks come as government agencies called on Kenyans to report suspected cases of shrinkflation and misleading product quantities amid rising complaints over shrinking pack sizes and declining product quality.

The appeal follows the Star’s Minday report highlighting the growing trend of shrinkflation, where manufacturers reduce the size or quantity of a product while maintaining the same retail price, and skimpflation, where companies lower product quality or service standards without reducing prices.

The practices are becoming increasingly common among fast-moving consumer goods, with consumers complaining they are paying the same amount for less value.

According to the Consumers Federation of Kenya (Cofek), complaints have increased significantly in recent years, particularly involving bread, cooking fat, tissue paper and liquefied petroleum gas (LPG).

Consumers have also raised concerns over changes in the quantity and quality of milk, cooking oil, margarine, wheat flour, maize flour, sugar, rice, tea, coffee, juice, soft drinks, toothpaste, detergents and soap.

Kemei clarified that reducing package sizes is not illegal provided consumers are informed of the changes.

He distinguished shrinkflation from outright fraud, noting that a genuine reduction in package size that is accurately reflected on the label differs from selling products that contain less than the quantity stated on the packaging.

“The latter constitutes a clear consumer protection violation,” he said.

The CAK is also investigating several retailers over allegations of misleading pricing and consumer exploitation.

With shrinkflation becoming a global concern, Kemei said the authority has begun engaging manufacturers, retailers and other stakeholders to explore both regulatory and non-regulatory measures aimed at improving transparency and consumer awareness.

Manufacturers maintain that resizing products is largely a response to mounting economic pressures rather than an attempt to exploit consumers.

They cite rising electricity tariffs, expensive fuel, higher taxes, costly imported raw materials, increased labour costs, expensive packaging materials and high borrowing costs as factors squeezing profit margins.

Industry players say many businesses are left with only two difficult choices, either raise retail prices and risk losing customers, or reduce product sizes while keeping prices within consumers’ reach.

Director of the National Weights and Measures Directorate John Wamwana said the agency has not received formal complaints on the specific concerns raised despite growing public discussion around shrinkflation.

He noted that under Kenya’s devolved system, enforcement of point-of-sale transactions is shared between the national and county governments.

County Weights and Measures offices are responsible for receiving complaints, conducting investigations and taking enforcement action against retailers, manufacturers and traders within their jurisdictions.

“We do not have evidence to indicate that the practices are widespread at the national level. Nevertheless, we encourage consumers who suspect short quantity or inaccurate measurements to report such cases to their respective county weights and measures offices for investigation.”

He said routine inspections of manufacturers, wholesalers, supermarkets, butcheries, bakeries, restaurants, LPG dealers and petrol stations are mainly undertaken by county governments, while the national office provides policy direction, technical oversight and specialised support where necessary.

Wamwana said the ongoing review of the division of functions between the two levels of government is expected to improve coordination and strengthen consumer protection.

Cofek Secretary General Stephen Mutoro said businesses have a legal obligation to be transparent whenever they reduce product sizes.

“Shrinkflation without clear disclosure squarely offends Kenya’s Consumer Protection Act, 2012,” Mutoro said.

He cited Section 13 of the Act, which prohibits false, misleading or deceptive representations regarding quantity, and Section 14, which outlaws unconscionable business conduct.

“If a 400-gram loaf becomes 350 grams in the same wrapper at the same price with no prominent notice, that is a misrepresentation as to quantity, not simply a pricing decision immune from scrutiny,” he said.

Mutoro argued that while Kenya’s legal framework is largely adequate, enforcement remains fragmented.

He noted that consumer complaints are often split between the Kenya Bureau of Standards, the Weights and Measures Department and the Competition Authority, creating gaps in accountability.

 

 

by MARTIN MWITA

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