SEOUL: South Korea’s antitrust regulator announced on Friday ( May 3 ) that food processors and suppliers will be required to notify customers if they reduce the size of their goods or face fines of up to 10 million won ( US$ 7,300 ).
The Fair Trade Commission (FTC ) cited the practice of some businesses cutting product portions while maintaining the price the same, or shrinkflation, as an unfair transaction that could result in penalties.
If processed food producers and manufacturers of household goods like toilet paper, detergent, and soaps downsize their items in a way that causes the unit price to rise, they will be required to display names for three months.
Following a three-month grace time, the law will become effective in August, and offenders will get fined 5 million won for their first offense and 10 million won for their next.
The FTC stated in a statement that the change was intended to stop companies from cutting down on the size, weight, or number of their products without giving enough notice, leading to unintentional price increases.