200 Reports Due to False Discounts in Vienna Supermarkets

The Chamber of Commerce and the Trade Association criticized too much regulation. Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) called for an objective discussion of the heated debate.

"The worse a business performs during inspections, the more frequently the Market Office conducts inspections," said Market Office Director Andreas Kutheil. The Ministry of Social Affairs stated in a release: "According to WIFO, prices for food, alcohol, and tobacco are rising by 3.8 percent this year, with a further increase of 3.2 percent expected for 2026. At the same time, the large food chains were able to increase their profits by around 60 percent last year." The Trade Association vehemently disputed this profit development, referring to the examined chains - Spar, Rewe, Hofer, Lidl. The profit increase was on average below ten percent.

Price Tag and Goods in Vienna Supermarkets Often Not Identical

The Market Office cited some offenses of the well-known retail chains as examples: From-to prices were given without assignment, the quantity information on the price tags did not match the products, mandatory information on the lowest price of the past 30 days was often missing for promotional items in the non-food sector. Or goods were advertised with conspicuous discounts without the legally required base prices being indicated. Kutheil clarified: "Price labeling is not a matter of personal preference, but legally regulated. If the content changes or a discount is advertised, it must be clearly and comprehensibly displayed on the shelf. Anything else is deception."

Law Against "Shrinkflation" Announced

According to Ulrike Königsberger-Ludwig, State Secretary for Consumer Protection (SPÖ), the government wants "fair prices on the shelf" and, in this regard, also a law for labeling so-called shrinkflation with ever less or poorer quality content at the same or rising price, she reaffirmed to several newspapers on Wednesday already made announcements. Overall, "clear rules, consistent controls, and an end to tricks at the expense of consumers" are needed.

"No one has a problem with control - but we have a problem with regulations that are simply not feasible in practice," said Christian Prauchner, Chairman of the Food Trade in the Austrian Chamber of Commerce (WKÖ), in a release. "If you penalize companies that strive to implement rules that are technically or logically not feasible, something is fundamentally wrong."

Trade Association Criticizes "Regulatory Overkill"

The published "interim report" is non-transparent, vague, and paints a distorted picture of economic reality, criticized the Trade Association (HV), which represents the interests of trade and thus also the examined food retailers, in a statement. Occasional incorrect labels or promotional notices are never entirely avoidable - but they are continuously improved and corrected.

The local "regulatory overkill" causes "individual errors," said HV Managing Director Rainer Will. "The regulatory requirements for pricing and discount labeling are stricter in hardly any country worldwide than in Austria." In fact, almost all of the points criticized by the Vienna Market Office are based on formal errors or technical adjustments - not on intent to deceive, according to Will. The topic of "advertising correctly with discounts" alone has become so complexly regulated in Austria that the Trade Association, together with a law firm, has published a 16-page guide for retailers and local suppliers. The guide was just recently presented in a training session for retailers, and the Vienna Market Office "unfortunately" did not provide experts at the invitation of the HV.

Hattmannsdorfer Advocates for "Rationalizing the Discussion"

The strong price increases in supermarkets have been a concern for politics for some time. A legislative proposal against hidden price increases is expected to be developed this year, as Hattmannsdorfer announced a few weeks ago. On Wednesday, he advocated for "rationalizing the discussion, because if we really want to get inflation under control, everyone must pull together - from farmers to the food industry to trade."

Together with Statistics Austria and the Federal Competition Authority, the Minister of Economic Affairs stated that they will carefully analyze price developments and individual cases and take targeted action based on this. "In addition, we are taking further steps for more transparency with a focus on controlling misleading discounts, clear rules for base price labeling, and measures against shrinkflation."

A reduction in VAT on staple foods seems distant not only due to the extremely difficult budgetary situation but also due to disagreement within the government. The ÖVP is critical, the NEOS are against it, SPÖ Finance Minister Markus Marterbauer does not see the financial leeway, while party leader Andreas Babler shows sympathy for such a step. The food industry and farmers reject price interventions. In the government retreat at the beginning of September, the fight against rising food prices mainly referred to the EU and the elimination of the "Austria surcharge."

(APA/Red)

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