European law - Liberalisation of pack sizes
Consumers will be spoilt for choice when purchasing food products while manufacturers will be free of constraints when producing food and drink following the EU's recent move to do away with restrictions on packaging sizes.The current EU rules on...
Consumers will be spoilt for choice when purchasing food products while manufacturers will be free of constraints when producing food and drink following the EU's recent move to do away with restrictions on packaging sizes.
The current EU rules on quantities in which pre-packed products can be sold are old and outdated, going back to the 1970s. The existing two directives fix the range of sizes for pre-packed food and liquid products. The present rules were adopted to protect consumers in their purchases as they enable consumers to compare different brands of commodities coming in standard sizes and to select the more conveniently priced product.
In practice, however, this leads to greater costs for food producers who have to comply with product ranges specific to each member state. In certain cases food manufacturers are unable to trade their products due to divergent member states' rules on pack sizes.
The proposed directive will repeal current legislation by laying down a new set of rules on nominal quantities for pre-packed products. The main aim behind this initiative is the furtherance of the internal market objective, which is the key to the economic success of the EU. The removal of restrictions on pack sizes will remove a barrier that food producers face when engaging in cross-border trade.
Food producers will now have the freedom to choose the size of packaging for most of their products. Around 70 pre-packed products, including ice cream and toothpaste, can now be produced in any quantity or size. The proposed directive only maintains size regulation for wine and spirits. A five-year phase-out period of national rules on package sizes is envisaged for certain products, including dried pasta, coffee, butter and sugar. At the expiration of the five-year term the directive will apply also to these products.
The new rules contained in the proposed directive will benefit consumers as well as food producers. Consumers will now face an infinite choice of different ranges of the same product. In some quarters it has been argued that consumers, especially the elderly and the disabled, might end up tricked by comparing only the price on a product when they should also compare the size of the product.
Consumers may risk being misled by a cheaper tube of toothpaste without realising that it contains a smaller volume. Adequate protection by existing labelling and unit pricing on products and by the current rules on unfair practices, including misleading advertising, should however allay any fears of consumer confusion.
The removal of restrictions on packaging sizes will also reduce administrative costs for businesses. So, food producers will be able to save on costs involved in making different sized packs for different markets. Yet, some small and medium sized enterprises might incur higher capital expenditure than they will save on administrative costs by having to change their machinery catering for a specific product size to another type of machinery which produces a different variety of sizes in order to be able to effectively compete on the market.
The European Parliament is expected to approve the proposed directive next month.
• Dr Grech is an associate with Guido de Marco & Associates and heads its European Law Division.
The current EU rules on quantities in which pre-packed products can be sold are old and outdated, going back to the 1970s. The existing two directives fix the range of sizes for pre-packed food and liquid products. The present rules were adopted to protect consumers in their purchases as they enable consumers to compare different brands of commodities coming in standard sizes and to select the more conveniently priced product.
In practice, however, this leads to greater costs for food producers who have to comply with product ranges specific to each member state. In certain cases food manufacturers are unable to trade their products due to divergent member states' rules on pack sizes.
The proposed directive will repeal current legislation by laying down a new set of rules on nominal quantities for pre-packed products. The main aim behind this initiative is the furtherance of the internal market objective, which is the key to the economic success of the EU. The removal of restrictions on pack sizes will remove a barrier that food producers face when engaging in cross-border trade.
Food producers will now have the freedom to choose the size of packaging for most of their products. Around 70 pre-packed products, including ice cream and toothpaste, can now be produced in any quantity or size. The proposed directive only maintains size regulation for wine and spirits. A five-year phase-out period of national rules on package sizes is envisaged for certain products, including dried pasta, coffee, butter and sugar. At the expiration of the five-year term the directive will apply also to these products.
The new rules contained in the proposed directive will benefit consumers as well as food producers. Consumers will now face an infinite choice of different ranges of the same product. In some quarters it has been argued that consumers, especially the elderly and the disabled, might end up tricked by comparing only the price on a product when they should also compare the size of the product.
Consumers may risk being misled by a cheaper tube of toothpaste without realising that it contains a smaller volume. Adequate protection by existing labelling and unit pricing on products and by the current rules on unfair practices, including misleading advertising, should however allay any fears of consumer confusion.
The removal of restrictions on packaging sizes will also reduce administrative costs for businesses. So, food producers will be able to save on costs involved in making different sized packs for different markets. Yet, some small and medium sized enterprises might incur higher capital expenditure than they will save on administrative costs by having to change their machinery catering for a specific product size to another type of machinery which produces a different variety of sizes in order to be able to effectively compete on the market.
The European Parliament is expected to approve the proposed directive next month.
• Dr Grech is an associate with Guido de Marco & Associates and heads its European Law Division.