OCU Takes Action Over Suspected Price Reflation Tactics
A consumer watchdog, the OCU, has previously challenged several major brands and the national regulator. The actions involved Gallo, Danone, Pescanova, Colacao, Tulipán, and Campofrío Pasta, accusing them of a strategy that keeps prices high while appearing to offer the same products. The complaint argues this move reduces consumer choice and harms fair competition by limiting price transparency across a broader range of products and companies.
The OCU filed a formal complaint with the National Markets and Competition Commission to determine whether there has been a pattern of unfair practices behind the scenes. The aim is to assess whether the alleged conduct constitutes unfair competition due to a lack of clear information presented to consumers.
In addition to lodging the complaint with the commission, the OCU plans to inform the Ministry of Consumer Affairs so that measures can be considered to compel manufacturers to improve the information provided to buyers about product price and quantity. This step seeks greater transparency across consumer goods, ensuring shoppers understand what they are paying for and in what quantities.
“Hidden” Price Increases
The OCU has criticized these so‑called opaque practices as being largely invisible to most shoppers, even when price hikes are legal. The warning to consumers is to stay vigilant for hidden spikes that may not be immediately evident in the sticker price but affect overall costs.
Documentation indicates a rise in energy and material costs has driven a noticeable increase in the prices of various goods and services. One area cited shows an annual food cost increase approaching double digits in some cases, highlighting the broader impact of input costs on everyday items.
Within this context, the OCU notes that some large food companies have adopted different strategies to minimize penalties for price rises, including reflation efforts designed to maintain margins while keeping the final price structure less transparent to the public.
Share of Affected Items
Recent studies cited by the OCU indicate that a notable portion of everyday products—about 7 percent of items in a typical shopping basket—may be influenced by reflation practices. While packaging and labeling regulations are generally met, the organization argues that a lack of clear information can still constitute unfair competition. Consumers are left to interpret rising prices, and the absence of transparent details can distort competition in the market.
Response from Danone
Danone has rejected the OCU’s accusations, stating that it does not apply any discount policy intended to blunt inflationary effects. The company has explicitly rejected claims that it has used discount measures to shield consumers from price increases. The OCU has included Danone in its list of companies under consideration for potential charges related to unfair price practices, as of recent reviews with the CNMC.
Further statements from sources close to the matter emphasize that Danone has been cooperative, engaging in discussions about product reformulation, packaging adjustments, and governance practices. The company maintains that its approach reflects proactive and transparent collaboration aimed at improving consumer information.
Citations: The ongoing discussions and filings reflect the concern about price transparency and consumer protection in the market, with the OCU pursuing multiple avenues to ensure accurate price signals reach shoppers. Details are attributed to the consumer organization and associated regulatory bodies as noted in published statements and formal submissions.