The Shrinkflation Prevention Act of 2024 directs the Federal Trade Commission to create regulations that treat shrinkflation as an unfair or deceptive business practice. Shrinkflation occurs when companies reduce the size or amount of a product while keeping the price the same or raising it, often without clearly disclosing these changes to consumers. The bill addresses concerns that such practices have contributed to inflation, with research suggesting that approximately 10 percent of inflation in some product categories results from shrinkflation rather than genuine cost increases. The FTC must issue these regulations within 18 months of the bill's enactment and can enforce violations using its existing authority under the Federal Trade Commission Act, while state attorneys general are also granted the ability to bring civil lawsuits against violating companies on behalf of their residents. The legislation aims to protect consumers and families from what it characterizes as deceptive pricing tactics that exploit consumers' tendency to notice price changes more readily than changes in product size.
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