Two Democrat lawmakers want to crack down on ‘shrinkflation’ — the ‘deceptive’ practice that has stoked the ire of consumers. But can they get the bill to pass?

Lou Carlozo
Two Democrat lawmakers want to crack down on ‘shrinkflation’ — the ‘deceptive’ practice that has stoked the ire of consumers. But can they get the bill to pass?
Two Democrat lawmakers want to crack down on ‘shrinkflation’ — the ‘deceptive’ practice that has stoked the ire of consumers. But can they get the bill to pass?

If you’ve had just about enough of those snack bags with fewer corn chips and more (hot) air, you might be pleased to know that two politicians on Capitol Hill have your back.

On March 26, U.S. Representatives Christopher Deluzio (D-Pa.) and Marie Gluesenkamp Pérez (D. Wash.) introduced the Shrinkflation Prevention Act. As the name implies, it would “prohibit corporations from deceptively decreasing the sizes of their products without lowering the price commensurately.”

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In recent years, shrinkflation has stoked the ire of consumers who’ve viewed it as pulling a fast one. As the Act describes, “shrinkflation might mean more air in a bag of chips, fewer sheets on a roll of paper towels, or a divot in the bottom of a jar of peanut butter.”

Shrinkflation rising

So, why does this happen? Many companies that employ shrinkflation are, most commonly, looking to avoid raising their prices — which was a big concern when inflation peaked at about 8% in 2022. That might sound like a commendable goal. The trouble, however, is that, in many cases, companies are being really cagey about it.

The list of (allegedly) guilty companies, as identified by consumers and various media outlets, seems to grow daily. One site, mouseprint.org, updates its list of shrinkflation examples every Monday via newsletter.

In one of its most recent examples, the website outed Kimberly-Clark for taking its Huggies Simply Clean Baby Wipes down from a 768 count to 704; despite the fact that it had added the words "HUGE VALUE" to the redesigned packaging.

In another egregious shrinkflation example, Gatorade trimmed its 32-ounce bottle down to 28 ounces. That's a drop of 14%. When Quartz quizzed a PepsiCo representative, the answer was pure spin: “Basically we redesigned the bottle, it’s more aerodynamic and it’s easier to grab… this is only a matter of design.”

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Shrinkflation meets stagnation?

Under the new proposed law, shrinkflation would be addressed two ways. First, the Federal Trade Commission would be directed “to establish shrinkflation as an unfair or deceptive act or practice.” If a company is found to have engaged in it, the FTC and state attorney generals would be able “to pursue civil actions against [it].”

Deluzio, a former Navy surface warfare officer deployed to Iraq, had some tough talk for corporate shrinkflators. “Shrinkflation is a ripoff — yet another way that big corporations are sticking it to folks,” he said in a press release. "It’s time to fight back."

According to St. Louis Fed research cited by Gluesenkamp Perez, corporate profits rose by 74 percent between 2020 and 2022: five times as fast as inflation.

“Corporations have used rising prices as cover to give you less for what you’re paying and boost their bottom line — while the amount of packaging and cost to get products on shelves largely remains the same,” Gluesenkamp Perez wrote on her website.

Yet, whether the two lawmakers will prevail with their proposed legislation — let alone get it through the House — may well be a matter of shrinking odds. Not only are the two sponsors Democrats, but President Joe Biden also highlighted shrinkflation in his State of the Union address in early March.

Given how Biden urged lawmakers to “crack down on corporations that engage in price gouging and deceptive pricing,” there’s a strong chance Republican House members will kill the bill before it even reaches the House floor. Why? They’d arguably want to avoid handing him, and the Democrats, a major win on an issue that’s popular with consumers.

The leverage, then, may rest with consumers in red and blue states alike. It all depends on whether they can turn shrinkflation into an issue that blows up political divides.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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