I 

118TH CONGRESS 

2D SESSION H. R. 7825 

To direct the Federal Trade Commission to issue regulations to establish 

shrinkflation as an unfair or deceptive act or practice, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2024 

Ms. PEREZ (for herself and Mr. DELUZIO) introduced the following bill; which 

was referred to the Committee on Energy and Commerce 

A BILL 

To direct the Federal Trade Commission to issue regulations 

to establish shrinkflation as an unfair or deceptive act 

or practice, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Shrinkflation Preven5 tion Act of 2024’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) According to the Bureau of Economic Anal9 ysis, from the third quarter of 2020 to the second 

10 quarter of 2022, corporate profits rose by 75 perVerDate Sep 11 2014 04:09 Apr 12, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7825.IH H7825

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1 cent, and Federal Reserve research found that 42 

2 percent of inflation over that same time period went 

3 toward greater corporate profits. 

4 (2) Shrinkflation, or product downsizing, occurs 

5 when a company decreases the amount or size of a 

6 consumer product and charges the same price, or a 

7 higher price, for such smaller product. 

8 (3) Companies seek to deceive consumers when 

9 they practice shrinkflation without clearly disclosing 

10 the size change and per unit price increase of a 

11 product. 

12 (4) According to the Bureau of Labor Statis13 tics, roughly 10 percent of inflation in some con14 sumer product categories is driven by shrinkflation. 

15 (5) Deceptive shrinkflation tactics allow compa16 nies to profit off unaware consumers, as academic 

17 research shows that consumers are less sensitive to 

18 changes in product size than to changes in price. 

19 (6) Shrinkflation is disrupting the ability of 

20 families in the United States to save money. 

21 SEC. 3. PROHIBITION OF SHRINKFLATION. 

22 (a) DEFINITION OF SHRINKFLATION.— 

23 (1) IN GENERAL.—In this Act, the term 

24 ‘‘shrinkflation’’ means the practice of downsizing, or 

25 reducing the amount or size of a consumer product 


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1 (as defined in section 101 of the Magnuson-Moss 

2 Warranty—Federal Trade Commission Improvement 

3 Act (15 U.S.C. 2301)) while not decreasing the price 

4 of such product by a commensurate amount. 

5 (2) MODIFICATIONS.—The Federal Trade Com6 mission (in this section referred to as the ‘‘Commis7 sion’’) may promulgate regulations under section 

8 553 of title 5, United States Code, to modify the 

9 definition in paragraph (1) as the Commission con10 siders appropriate. 

11 (b) PROHIBITION.—Not later than 18 months after 

12 the date of enactment of this Act, the Commission shall 

13 promulgate regulations under section 553 of title 5, 

14 United States Code, to prohibit any manufacturer from 

15 engaging in shrinkflation. 

16 SEC. 4. ENFORCEMENT. 

17 (a) ENFORCEMENT BY THE COMMISSION.— 

18 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC19 TICES.—A violation of a regulation promulgated 

20 under section 3(b) shall be treated as a violation of 

21 a rule defining an unfair or deceptive act or practice 

22 under section 18(a)(1)(B) of the Federal Trade 

23 Commission Act (15 U.S.C. 57a(a)(1)(B)). 

24 (2) POWERS OF THE COMMISSION.— 


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1 (A) IN GENERAL.—The Commission shall 

2 enforce the regulations promulgated under sec3 tion 3(b) in the same manner, by the same 

4 means, and with the same jurisdiction, powers, 

5 and duties as though all applicable terms and 

6 provisions of the Federal Trade Commission 

7 Act (15 U.S.C. 41 et seq.) were incorporated 

8 into and made a part of this Act. 

9 (B) PRIVILEGES AND IMMUNITIES.—Any 

10 person who violates a regulation promulgated 

11 under section 3(b) shall be subject to the pen12 alties and entitled to the privileges and immuni13 ties provided in the Federal Trade Commission 

14 Act (15 U.S.C. 41 et seq.). 

15 (C) AUTHORITY PRESERVED.—Nothing in 

16 this Act shall be construed to limit the author17 ity of the Commission under any other provi18 sion of law. 

19 (D) RULEMAKING.—The Commission shall 

20 promulgate in accordance with section 553 of 

21 title 5, United States Code, such rules as may 

22 be necessary to carry out this Act. 

23 (b) ENFORCEMENT BY STATES.— 

24 (1) IN GENERAL.—In any case in which the at25 torney general of a State has reason to believe that 


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1 an interest of the residents of the State has been or 

2 is threatened or adversely affected by the engage3 ment of any person in a practice that violates a reg4 ulation promulgated under section 3(b), the attorney 

5 general of the State may, as parens patriae, bring 

6 a civil action on behalf of the residents of the State 

7 in an appropriate district court of the United 

8 States— 

9 (A) to enjoin further violation of such reg10 ulation by such person; 

11 (B) to compel compliance with such regula12 tion; 

13 (C) to obtain a permanent, temporary, or 

14 preliminary injunction; 

15 (D) to obtain civil penalties; 

16 (E) to obtain damages, restitution, or 

17 other compensation on behalf of such residents; 

18 or 

19 (F) to obtain any other equitable relief 

20 deemed appropriate by the court. 

21 (2) RIGHTS OF THE COMMISSION.— 

22 (A) NOTICE TO THE COMMISSION.— 

23 (i) IN GENERAL.—Except as provided 

24 in clause (iii), the attorney general of a 

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1 ing that the attorney general intends to 

2 bring a civil action under paragraph (1) 

3 not later than 10 days before initiating the 

4 civil action. 

5 (ii) CONTENTS.—The notification re6 quired by clause (i) with respect to a civil 

7 action shall include a copy of the complaint 

8 to be filed to initiate the civil action. 

9 (iii) EXCEPTION.—If it is not feasible 

10 for the attorney general of a State to pro11 vide the notification required by clause (i) 

12 before initiating a civil action under para13 graph (1), the attorney general shall notify 

14 the Commission immediately upon insti15 tuting the civil action. 

16 (B) INTERVENTION BY THE COMMIS17 SION.—The Commission may— 

18 (i) intervene in any civil action 

19 brought by the attorney general of a State 

20 under paragraph (1); and 

21 (ii) upon intervening— 

22 (I) be heard on all matters aris23 ing in the civil action; and 

24 (II) file petitions for appeal of a 

25 decision in the civil action. 


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1 (3) INVESTIGATORY POWERS.—Nothing in this 

2 subsection may be construed to prevent the attorney 

3 general of a State from exercising the powers con4 ferred on the attorney general by the laws of the 

5 State to conduct investigations, to administer oaths 

6 or affirmations, or to compel the attendance of wit7 nesses or the production of documentary or other 

8 evidence. 

9 (4) ACTION BY THE COMMISSION.—If the Com10 mission institutes a civil action or an administrative 

11 action with respect to a violation of a regulation pro12 mulgated under section 3(b), the attorney general of 

13 a State may not, during the pendency of such ac14 tion, bring a civil action under paragraph (1) 

15 against any defendant named in the complaint of the 

16 Commission for the violation with respect to which 

17 the Commission instituted such action. 

18 (5) VENUE; SERVICE OF PROCESS.— 

19 (A) VENUE.—Any action brought under 

20 paragraph (1) may be brought in— 

21 (i) the district court of the United 

22 States that meets applicable requirements 

23 relating to venue under section 1391 of 

24 title 28, United States Code; or 


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1 (ii) another court of competent juris2 diction. 

3 (B) SERVICE OF PROCESS.—In an action 

4 brought under paragraph (1), process may be 

5 served in any district in which the defendant— 

6 (i) is an inhabitant; or 

7 (ii) may be found. 

8 (6) ACTIONS BY OTHER STATE OFFICIALS.— 

9 (A) IN GENERAL.—In addition to civil ac10 tions brought by attorneys general under para11 graph (1), any other official of a State who is 

12 authorized by the State to do so may bring a 

13 civil action under paragraph (1), subject to the 

14 same requirements and limitations that apply 

15 under this subsection to civil actions brought by 

16 attorneys general. 

17 (B) SAVINGS PROVISION.—Nothing in this 

18 subsection may be construed to prohibit an au19 thorized official of a State from initiating or 

20 continuing any proceeding in a court of the 

21 State for a violation of any civil or criminal law 

22 of the State. 

Æ 


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