Mondelēz International has been found guilty of consumer deception by Germany's Regional Court of Bremen over the shrinkflation of its Milka chocolate bar. The ruling stems from a lawsuit filed by the Consumer Advice Center Hamburg (Verbraucherzentrale Hamburg), the city's consumer protection office.
The shrinkflation case
The court found that Mondelēz reduced the size of Milka bars from 100g to 90g without significantly changing the packaging or its visual design. The width, length, and overall appearance of the bar remained the same. The company only updated the weight label from "100g" to "90g" on the package.
The court ruled that this labeling change alone was insufficient to prevent consumer confusion. Because the product had been familiar to consumers for years, the court argued that shoppers were extremely unlikely to recheck the size label when making a purchase decision.
Packaging visibility and clarity
The Consumer Advice Center Hamburg emphasized that consumers should not be expected to examine packaging for size reductions, especially because quantity information is often obscured by other products on store shelves. According to the court, Mondelēz should have included a clearly visible notice on the packaging to alert buyers to the change.
The court's ruling suggests a higher bar for manufacturers reducing product sizes. Simply updating the numerical weight label does not satisfy consumer protection requirements when the physical packaging design remains unchanged and familiar to repeat buyers.
Industry context
Shrinkflation is widespread across the confectionery industry, driven largely by rising raw material costs. The cocoa crisis, which escalated significantly in 2024, has prompted many manufacturers to shrink pack sizes rather than raise prices. Mondelēz is not alone in this practice; the company previously reduced segment counts in its Toblerone bars in the UK in 2016.
Some companies, including Mondelēz, are exploring cultivated cocoa as a long-term solution to cost pressures. However, shrinking pack sizes remains a faster and easier option for manufacturers facing margin pressure.
Mondelēz response and next steps
Mondelēz stated in response to the ruling: "We take note of the court ruling and take it seriously; we will now examine the court's reasoning in detail." The company added that its aim is to "communicate transparently, comprehensively, and responsibly" with consumers and that "the trust of our consumers in our brand and our products is our greatest priority."
The ruling from the Regional Court of Bremen is not yet legally binding, meaning Mondelēz may appeal the decision.