Federal officials discussed launching an investigation into shrinkflation last September but ultimately did not move forward with a probe, according to newly released records.
Blacklock's Reporter says the practice, which involves reducing product sizes while keeping prices the same or increasing them, remains legal in Canada.
A Privy Council report on focus group research found that many Canadians were aware of shrinkflation but struggled to recall specific examples in their own lives.
When asked about the possibility of a government task force investigating the issue, participants were divided. Some saw it as a step in the right direction, while others questioned whether the government had the authority to regulate pricing and packaging decisions made by private companies.
The report, titled Continuous Qualitative Data Collection of Canadians’ Views, noted skepticism about the effectiveness of a federal investigation in stabilizing grocery prices.
Some respondents argued that unless stricter regulations were imposed on major grocery chains, any government action would have little impact on affordability.
The research was conducted nationwide under a $1.6 million contract with The Strategic Counsel, a Toronto-based polling firm.
The findings were dated September 16, just months after then-U.S. President Joseph Biden announced a Strike Force on Unfair and Illegal Pricing, which included an analysis of shrinkflation.
Statistics Canada officials have acknowledged that shrinkflation is a widespread industry practice.
Jennifer Withington, assistant chief statistician, told the Commons industry committee last November that the agency factors in product size reductions when calculating the Consumer Price Index.
She cited examples such as laundry detergent shrinking from 2.47 litres to 1.85 litres, processed cheese slices decreasing from 450 grams to 410 grams, and boxed macaroni and cheese dropping from 230 grams to as little as 200 grams.
“We account for shrinkflation,” Withington testified. “In no way do we measure apples to oranges. We always measure apples to apples and account for any changes in quantity.”