Shrinkflation Bill May Help With Increased Costs of Consumer Goods

A bill intended to stop “Shrinkflation,” or the idea of paying more money for less of a product, was introduced by Senator Bob Casey, D-Pa. This bill will fight the increased costs of consumer goods routinely purchased by American families, such as cereals, chips, detergents, cookies, and toilet paper.

Casey’s bill will attempt to crack down on corporations that deceive consumers by selling smaller sizes of their products without lowering the prices. Casey has been investigating corporate price gouging and other actions by big corporations that have caused American families to tighten their belts even further.

“Corporations are trying to pull the wool over our eyes by shrinking their products without reducing their prices — anyone on a tight budget sees it every time they go to the grocery store,” Casey said. The Pennsylvania rep claims, “Families are sick and tired of digging deeper into their wallets for their weekly grocery runs while corporate CEOs laugh all the way to the bank. I’m fighting to crack down on shrinkflation and hold corporations accountable for these deceptive practices.”

WTAE Pittsburgh reports that Casey believes more must be done to hold corporations accountable for taking advantage of Americans. His bill aims to “lower costs for working families by following four overall goals: put more money in the pockets of working families; make big corporations pay their fair share; fight unfair corporate price gouging; and take on corporate monopolies to increase competition and lower costs.”

In mid-February, Casey introduced legislation to protect American families by banning grossly excessive price increases and cracking down on corporate price gouging.

The Shrinkflation Prevention Act proposes several key measures. Firstly, it mandates the FTC to create regulations recognizing shrinkflation as an unfair or deceptive practice, thereby forbidding manufacturers from employing shrinkflation tactics. Secondly, it grants the FTC the authority to initiate civil actions against companies found to be practicing shrinkflation. Lastly, it enables state attorneys general to pursue civil actions against corporations that participate in shrinkflation practices.

The bill is still pending.