Austrian Government introduces New Law Against “Shrinkflation” 

10 December 2025

The Austrian government has introduced a legislation to combat “shrinkflation,” a concealed practice where product contents are reduced while prices remain unchanged. Under the new law, food and drugstore retailers must clearly label the reduction in package size at the same price for 60 days. Smaller retailers with five or fewer branches are exempt or have simplified rules.

Penalties for non-compliance start from €2,500 per product to up to €10,000 for a second offence, and a maximum of €15,000 for repeated breaches. The Economic Affairs Minister Wolfgang Hattmannsdorfer described the measure as an “anti-deceptive packaging law.” The proposal is expected to pass before the end of the year.

The government also plans stricter labelling based on the price. This would require unit prices to be displayed at least as big as half the size of the sales price. The Vice Chancellor Andreas Babler said this aims to prevent misleading discounts and improve price transparency.

The retail sector has criticised the law. They argue that it would require them additional effort, with unnecessary costs and bureaucracy, and could raise shelf prices. Both the Austrian Economic Chamber and the Trade Association call for an EU-wide legislation targeting manufacturers.