The Shrinkflation Reduction Act directs the Federal Trade Commission to create regulations requiring manufacturers to label products when they have reduced the size or quantity of an item without proportionally lowering the price, a practice known as shrinkflation. The FTC must issue these regulations within one year of the bill's enactment and can enforce them as violations of unfair or deceptive trade practices, with violators subject to existing FTC penalties. The bill affects all manufacturers of consumer products sold in the United States and gives consumers clearer information about when they are getting less product for the same price. The legislation authorizes one million dollars to carry out the FTC's regulatory and enforcement work. This bill aims to increase transparency in consumer markets and help shoppers identify when companies are quietly reducing product sizes rather than adjusting prices.
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