The Public Consumer Initiative (PII), a consumer protection group, urged keeping the labeling rollout on track for all product categories. OPI expressed its stance in a letter to Prime Minister Mikhail Mishustin, with a copy accessible from socialbites.ca.
Earlier, the government moved to ease the pace of enforcement for certain labeling requirements. On March 30, Mishustin signed a decree delaying the start of the mandatory labeling phase for dairy products produced by farms and agricultural cooperatives to December 1, 2023, while giving retailers a deadline for milk to September this year and, correspondingly, bottled water to March 2023. At the same time, labeling for several product categories that had already begun would remain in place. Voluntary trials for labeling beer, dietary supplements, antiseptics, and medical devices would continue as well.
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Product labeling was introduced by a 2018 law spearheaded by Prime Minister Dmitry Medvedev. The plan is to establish a unified labeling system for the most essential goods by 2024. The entity operating the digital marking and traceability system is the Center for Advanced Technology, which runs the “Honest Mark” program.
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Product labeling uses a two-dimensional Data Matrix code applied to packaging or labels. Mandatory labeling currently covers specific items such as footwear, medicines, tobacco, fur clothing, tires, perfumery, and select light industry products. Trials for labeling have been conducted in beer, soft drinks, and other items.
Tempo matters
PIO opposes pausing labeling. It argues the move would help curb price increases and alleviate concerns among Russians, noting Rosstat data that show inflation running at 15.66% as of March 25, up from 14.53% a week earlier, the highest rate since September 2015.
According to the letter, inflation stems from multiple factors. Unfriendly actions by foreign states and global firms, combined with disruptions in production, transportation, and trade, have undermined local supply and raised prices. The PIO argues that maintaining labeling momentum would provide real-time, independent data on stock levels in wholesale and retail channels, reducing manipulation by retail chains, intermediaries, and manufacturers. It would also let consumers track product availability and alert regulators if items run low.
“The Chestny Znak app, the consumer-facing portion of the labeling system, will enable shoppers to participate in independent oversight, verifying whether items are present in stores and reporting absences to authorities in real time.”
PIO says these tagging systems will help protect domestic production from declines due to parallel imports and inflated import needs. It estimates that fake products range from 20% to 90% in categories like canned meat and fish, baby food, alcoholic beverages, and animal feed, with reductions anticipated across drugs, tobacco, durable goods, and perfumery as labeling expands.
The government’s press service confirmed that the letter was received from human rights advocates and forwarded to the Ministry of Industry and Trade for consideration. The ministry noted support for measures aimed at stopping illegal smuggling of industrial goods and said the digital labeling system helps maintain delivery volumes and pricing while shielding consumers from unreasonable price spikes.
The ministry also highlighted that labeling enhances consumer protection and market integrity amid the legalization of parallel imports and the strengthening of technical regulation.
“Therefore, the government backs further development and use of labeling capabilities by authorities, businesses, and consumers. Some postponements were made to accommodate information requirements related to the disposal of goods at checkout for dairy products and water used by restaurants, farmers, and retail outlets.”
Economists favor labeling; some businesses oppose
Assisting professor Igor Stroganov from Plekhanov University noted that labeling is not a cure-all, but its benefits are clear. He argued that labeling curbs counterfeit goods, helps distinguish Russian-made items from those of unknown origin, and could ease shortages by clarifying the market. He also warned about the cost burden on the state and on entrepreneurs, but stressed that a transparent economy with quality goods justifies the expense.
Olga Panina, an associate professor at the Financial University under the Government of the Russian Federation, suggested that the March 30 decree fits within an ongoing process planned through 2024. She pointed out that many products are already labeled and that the 2022 plan includes nine product lines, with dairy labeling for the agricultural sector deferred to support broader initiatives.
Business representatives remain skeptical that labeling will solve the issues highlighted by PIO. They cited inflation as driven by foreign actions, noting that a February 2022 survey found 51.6% of entrepreneurs raised prices due to markups, which they say fuels inflation. They emphasize the need to monitor real conditions and rely on the tax service and Rosstat for economic signals rather than on labeling alone.
In this view, new labeling projects were paused to strengthen economic resilience, rather than as a signal of policy retreat. The dialogue continues as authorities weigh the balance between transparency, consumer protection, and the practicalities faced by producers and retailers.