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Missing Morsels:

The Incredible Shrinking Package

 

If you've loaded up your purchases of groceries and household products lately you may have noticed it's taking a lot less effort. Perhaps those extra workouts are toning up your muscles quicker than you thought?… or perhaps what you're loading up is simply weighing less! In fact the latter is happening more frequently, as manufacturers keep their prices the same while filling the box with a bit less than you are used to. The box stays the same, the wrapping the same, but the content amount is different. Of course the manufacturer does have to change the listed weight, but they can keep the packaging and design the same, meaning you likely won't even notice the smaller portions.

So is it legal? Well technically yes, as long as the manufacturer ensures that the correct content weight and size is correctly marked on the package. Is it deceptive and misleading? Arguably so. It's a subtle way for manufacturers to increase the price, without changing the actual sticker price. In our opinion and in the opinion of others who have noticed this "shrink wrap swindle" it's a scam. If you went to buy your typical carton of eggs and found that they were only filling them with 10 or 11 eggs, then you'd likely be steamed. In addition, manufacturers are eager to let us know when their packages contains a "20% bonus amount" but when is the last time that you saw a package labeled "Now 20% less"? So what it means is consumers have to be more alert to these practices to avoid getting gouged.

Some things you can do to protect yourself:

Be particularly aware of products where this type of practice is easily hidden. This includes packaging in particular, that is non-standard and/or where the contents is not visible. For example if a standard litre of milk were all of a sudden labeled ".8 litres", or clear beverage containers were only being filled ¾ full, you would likely notice. Products such as wine, peanut butter, glucose syrup and refined sugar syrup have standardized container sizes under the Consumer Packaging Act. However others don't so products such as breakfast cereals, chips, cookies, many canned products, can often be subtly reduced in content.

Get in the habit of shopping by comparing the unit cost pricing. Most grocery stores label in small letters on the shelf, the cost per unit such as 37¢ / 100 ml or per 100 gram. This is your best way to compare pricing of goods. For example, two boxes may look identical in package design, size, and price. However one may contain considerably less in actual contents

Watch for differences in similarly manufactured products that have different flavor or slightly different ingredients. Cereal is a prime example. For example we found that Quaker Harvest Crunch had the same sized box, very similar packaging, and the same price for it's "Original" brand and its' "Original Light" brand granola. Yet checking the label revealed that the "Original Light" brand cost 92.9¢ per 100 grams versus 79.9¢ per 100 grams for the "Original" brand - meaning the "Light" brand was costing you a little over 16% more. We also found this type of packaging practice occurring with products such as soups, stews, health and candy bars, etc.

It always struck us as ironic that something that is "light" - presumably because there were some things not added in, would cost you more rather than less. Perhaps you pay to have someone add it in and then turn around and take it out - sounds almost like some sort of government practice?

Beware of the fill. Some products do not change in size since it is easy to add cheap filler - like air or water. For example if an opaque coloured bag of chips is filled with less chips, then it is easy to keep the same package: just add the air. Sure that helps cut down on calories, but it also means what we buy doesn't go as far as it used to so we just end up having to buy more.

In it's natural habitat. Tuna or salmon may be packed in water, which helps keep it fresh, but the practice goes beyond a humanitarian gesture to appease naturalists. It is also a way to disguise how much is really in the container. For example the tuna we tested came in 170 g (6 oz) tins but the actual fish content was only 120 g (4.2 oz), meaning it was close to 30% water. So to truly compare how much you are getting compare the drained content, which should be listed as well.

Check for subtle changes that can add to the price. We found for example that Ritz crackers had regular shaped and special Christmas shaped versions both at the same price per box. The Christmas version contained less product meaning you were paying around 11% more. Now of course those special shaped crackers may have been just the thing to make the season festive, as guests raved about the holiday shapes of their crackers (even Martha Stewart would be envious). However being aware of this and some of the subtle ways that manufacturers and retailers can jack up the price without you noticing, can prevent you from falling prey to these cost hikes.

Be careful of the bulk size boondoggle. While buying a larger size is frequently cheaper it isn't always. In fact retailers sometimes charge a higher unit price for the economy size. Not only in grocery sections can this occur, but also in health and beauty aisles as well. Again, the unit cost price is your financial friend in revealing what you are really paying.

If you suspect that a manufacturer or retailer is moving beyond being subtly misleading to being downright dishonest, then you can raise this with the Competition Bureau which oversees consumer packaging and labeling matters. Companies in both Canada and the US have been prosecuted for trying to pull one too many fast ones over on the consumer. So why not ensue that you won't be their next victim?

 

Questions? Comments? Suggestions for The MoneyRunner? Write to us at Themoneyrunner@debtfreegrad.com

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