200 Reports Due to False Discounts in Vienna Supermarkets

"The worse a business performs during an inspection, the more frequently the Market Authority conducts inspections," said Market Authority 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."

Price Tag and Goods Often Not Identical in Vienna Supermarkets

The Market Authority cited some offenses by 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, and 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 Economic Chamber (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. Isolated incorrect labels or promotional notices are never entirely avoidable in a complex, highly digitized environment where people work - 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.

Politics Wants to End "Austria Surcharge"

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 announced by Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) a few weeks ago. A reduction in VAT on staple foods seems distant not only due to the extremely difficult budgetary situation but also because of disagreement within the government. The ÖVP is critical, the NEOS are against it, SPÖ Finance Minister Markus Marterbauer sees no financial leeway, while party leader Andreas Babler shows sympathy for such a step. The food industry and agricultural sector 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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