The Department of Trade and Industry (DTI) has approved the downsizing of key goods as a response to rising production costs, allowing manufacturers to cope without increasing prices. Trade Assistant Secretary Amanda Marie Nograles, head of the DTI’s consumer protection group, announced the decision during the Bangon Pilipinas briefing.
The approval is conditional, requiring manufacturers to justify the reduction in size or weight and demonstrate that selling these downsized products at the same price is necessary due to higher production costs.
The move comes in light of consumer complaints about the shrinking size of basic commodities, seen as a method for manufacturers to navigate Republic Act No. 7851, or the Price Act. Under this law, the DTI has the authority to establish suggested reasonable retail prices for necessities and prime commodities.
The Price Coordinating Council, chaired by the trade secretary, is also mandated to implement programs for price stabilization. Nograles acknowledged the phenomenon of shrinkflation in local products and stated that the DTI conducted a thorough evaluation before approving such downsizing.
Source: PhilNews24 | January 18, 2024
