The Shrinkflation Prevention Act of 2024 directs the Federal Trade Commission to issue regulations that treat shrinkflation—reducing product size or quantity while keeping prices the same or higher—as an unfair or deceptive business practice. The bill defines shrinkflation as when manufacturers downsize consumer products without proportionally lowering prices, which Congress found affects roughly 10 percent of inflation in some product categories and harms consumers who are often unaware of the size changes. The FTC would have 18 months from the bill's enactment to create and enforce these regulations, with violations treated the same as other FTC violations of consumer protection law. State attorneys general would also be authorized to file civil lawsuits against companies engaged in shrinkflation, seeking injunctions, civil penalties, and damages for residents, though they must notify the FTC before taking action. The bill includes no specific funding allocation, as it assigns enforcement responsibilities to existing FTC authority and state legal resources.
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