On Wednesday, a few senators introduced a bill meant to crackdown on “shrinkflation”—the process wherein companies reduce the amount of product in a package while keeping the price the same, reports HuffPost.
“While you were Super Bowl shopping, did you notice smaller-than-usual products where the price stays the same?” President Joe Biden asked earlier this month on X, formerly Twitter. “I’m calling on the big consumer brands to put a stop to it.”
Lawmakers are now wanting to target the practice through the Federal Trade Commission. The proposed bill would direct the FTC to develop regulations that classify shrinkflation as an unfair or deceptive practice. Additionally, it would give the FTC and state attorneys general the ability to pursue civil actions and fines against companies that practice it.
“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,” said Senator Bob Casey.
According to the Bureau of Labor Statistics, the most common product categories that companies downsize include household goods and snacks. The agency said that manufacturers prefer to decrease product quantity instead of price because shoppers in these categories tend to be more sensitive to price increases.
Opponents of the bill find the issue lacks merit.
“These arguments are political spin and not serious explanations," said Senator John Thune. Full Story