Rep. Omar Introduces Bill to Combat Shrinkflation and Protect Consumers
WASHINGTON – Today, Congresswoman Ilhan Omar (MN-05) introduced the Shrinkflation Reduction Act, aimed at enhancing pricing transparency for consumers and combating the deceptive practice of shrinkflation.
Shrinkflation, the practice of reducing a product's size or quantity while maintaining or increasing its price, has become a widespread pricing strategy. This tactic allows companies to pass on increased costs to consumers without overtly raising listed prices, taking advantage of consumers' lower sensitivity to changes in size and quality compared to price changes.
Key provisions of the Shrinkflation Reduction Act include:
Mandatory shrinkflation labels on affected packaging, clearly indicating when products have been reduced in size or quantity.
Penalties for labeling violations, which will be treated as unfair or deceptive acts or practices.
Granting the Federal Trade Commission (FTC) flexible authority to promulgate strong regulations on labeling requirements.
"At a time when many Americans are struggling with the rising cost of living, it's unacceptable that corporations are secretly downsizing their products to pad their profits," said Rep. Omar."This bill will shine a light on these deceptive practices and give consumers the information they need to make informed choices. Shrinkflation is a hidden tax on working families, and it's time we put a stop to it."
The issue of shrinkflation has gained international attention in recent years. Countries such as Brazil, France, and South Korea have already begun implementing rules around shrinkflation transparency, requiring clear warnings or labeling of product changes. The Shrinkflation Reduction Act would position the United States alongside these nations in the global effort to protect consumers from deceptive pricing practices. By requiring manufacturers to be transparent about size reductions and giving the FTC the tools to enforce these regulations, the bill seeks to level the playing field for consumers.
The bill is co-sponsored by: Jamaal Bowman (NY-16), CoriBush (MO-01), Andre Carson(IN-07), Greg Casar (TX-35), Emanuel Cleaver (MO-05), Steven Horsford (NV-04), Jonathan Jackson (IL-01), Marcy Kaptur (OH-09), Summer Lee (PA), Eleanor Holmes Norton (DC), Delia Ramirez(IL-03), Valerie Foushee (NC-04), Rashida Tlaib (MI-12), Paul Tonko (NY-20), Bonnie Watson Coleman (NJ-12).
This bill is endorsed by: Consumer Action, Consumer Federation ofAmerica, Consumer World, Groundwork Collaborative, Liberation in a Generation, National Consumers League, Public Citizen.
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