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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Shrinkflation Preven-
tion Act of 2024’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) According to the Bureau of Economic Anal-
ysis, from the third quarter of 2020 to the second 
quarter of 2022, corporate profits rose by 75 per-
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cent, and Federal Reserve research found that 42 
percent of inflation over that same time period went 
toward greater corporate profits. 
(2) Shrinkflation, or product downsizing, occurs 
when a company decreases the amount or size of a 
consumer product and charges the same price, or a 
higher price, for such smaller product. 
(3) Companies seek to deceive consumers when 
they practice shrinkflation without clearly disclosing 
the size change and per unit price increase of a 
product. 
(4) According to the Bureau of Labor Statis-
tics, roughly 10 percent of inflation in some con-
sumer product categories is driven by shrinkflation. 
(5) Deceptive shrinkflation tactics allow compa-
nies to profit off unaware consumers, as academic 
research shows that consumers are less sensitive to 
changes in product size than to changes in price. 
(6) Shrinkflation is disrupting the ability of 
families in the United States to save money. 
SEC. 3. PROHIBITION OF SHRINKFLATION. 
(a) DEFINITION OF SHRINKFLATION.— 
(1) IN
GENERAL.—In this Act, the term 
‘‘shrinkflation’’ means the practice of downsizing, or 
reducing the amount or size of a consumer product 
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(as defined in section 101 of the Magnuson-Moss 
Warranty—Federal Trade Commission Improvement 
Act (15 U.S.C. 2301)) while not decreasing the price 
of such product by a commensurate amount. 
(2) MODIFICATIONS.—The Federal Trade Com-
mission (in this section referred to as the ‘‘Commis-
sion’’) may promulgate regulations under section 
553 of title 5, United States Code, to modify the 
definition in paragraph (1) as the Commission con-
siders appropriate. 
(b) PROHIBITION.—Not later than 18 months after 
the date of enactment of this Act, the Commission shall 
promulgate regulations under section 553 of title 5, 
United States Code, to prohibit any manufacturer from 
engaging in shrinkflation. 
SEC. 4. ENFORCEMENT. 
(a) ENFORCEMENT BY THE COMMISSION.— 
(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES.—A violation of a regulation promulgated 
under section 3(b) shall be treated as a violation of 
a rule defining an unfair or deceptive act or practice 
under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)). 
(2) POWERS OF THE COMMISSION.— 
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(A) IN GENERAL.—The Commission shall 
enforce the regulations promulgated under sec-
tion 3(b) in the same manner, by the same 
means, and with the same jurisdiction, powers, 
and duties as though all applicable terms and 
provisions of the Federal Trade Commission 
Act (15 U.S.C. 41 et seq.) were incorporated 
into and made a part of this Act. 
(B) PRIVILEGES
AND
IMMUNITIES.—Any 
person who violates a regulation promulgated 
under section 3(b) shall be subject to the pen-
alties and entitled to the privileges and immuni-
ties provided in the Federal Trade Commission 
Act (15 U.S.C. 41 et seq.). 
(C) AUTHORITY PRESERVED.—Nothing in 
this Act shall be construed to limit the author-
ity of the Commission under any other provi-
sion of law. 
(D) RULEMAKING.—The Commission shall 
promulgate in accordance with section 553 of 
title 5, United States Code, such rules as may 
be necessary to carry out this Act. 
(b) ENFORCEMENT BY STATES.— 
(1) IN GENERAL.—In any case in which the at-
torney general of a State has reason to believe that 
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an interest of the residents of the State has been or 
is threatened or adversely affected by the engage-
ment of any person in a practice that violates a reg-
ulation promulgated under section 3(b), the attorney 
general of the State may, as parens patriae, bring 
a civil action on behalf of the residents of the State 
in an appropriate district court of the United 
States— 
(A) to enjoin further violation of such reg-
ulation by such person; 
(B) to compel compliance with such regula-
tion; 
(C) to obtain a permanent, temporary, or 
preliminary injunction; 
(D) to obtain civil penalties; 
(E) to obtain damages, restitution, or 
other compensation on behalf of such residents; 
or 
(F) to obtain any other equitable relief 
deemed appropriate by the court. 
(2) RIGHTS OF THE COMMISSION.— 
(A) NOTICE TO THE COMMISSION.— 
(i) IN GENERAL.—Except as provided 
in clause (iii), the attorney general of a 
State shall notify the Commission in writ-
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ing that the attorney general intends to 
bring a civil action under paragraph (1) 
not later than 10 days before initiating the 
civil action. 
(ii) CONTENTS.—The notification re-
quired by clause (i) with respect to a civil 
action shall include a copy of the complaint 
to be filed to initiate the civil action. 
(iii) EXCEPTION.—If it is not feasible 
for the attorney general of a State to pro-
vide the notification required by clause (i) 
before initiating a civil action under para-
graph (1), the attorney general shall notify 
the Commission immediately upon insti-
tuting the civil action. 
(B) INTERVENTION
BY
THE
COMMIS-
SION.—The Commission may— 
(i) intervene in any civil action 
brought by the attorney general of a State 
under paragraph (1); and 
(ii) upon intervening— 
(I) be heard on all matters aris-
ing in the civil action; and 
(II) file petitions for appeal of a 
decision in the civil action. 
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(3) INVESTIGATORY POWERS.—Nothing in this 
subsection may be construed to prevent the attorney 
general of a State from exercising the powers con-
ferred on the attorney general by the laws of the 
State to conduct investigations, to administer oaths 
or affirmations, or to compel the attendance of wit-
nesses or the production of documentary or other 
evidence. 
(4) ACTION BY THE COMMISSION.—If the Com-
mission institutes a civil action or an administrative 
action with respect to a violation of a regulation pro-
mulgated under section 3(b), the attorney general of 
a State may not, during the pendency of such ac-
tion, bring a civil action under paragraph (1) 
against any defendant named in the complaint of the 
Commission for the violation with respect to which 
the Commission instituted such action. 
(5) VENUE; SERVICE OF PROCESS.— 
(A) VENUE.—Any action brought under 
paragraph (1) may be brought in— 
(i) the district court of the United 
States that meets applicable requirements 
relating to venue under section 1391 of 
title 28, United States Code; or 
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(ii) another court of competent juris-
diction. 
(B) SERVICE OF PROCESS.—In an action 
brought under paragraph (1), process may be 
served in any district in which the defendant— 
(i) is an inhabitant; or 
(ii) may be found. 
(6) ACTIONS BY OTHER STATE OFFICIALS.— 
(A) IN GENERAL.—In addition to civil ac-
tions brought by attorneys general under para-
graph (1), any other official of a State who is 
authorized by the State to do so may bring a 
civil action under paragraph (1), subject to the 
same requirements and limitations that apply 
under this subsection to civil actions brought by 
attorneys general. 
(B) SAVINGS PROVISION.—Nothing in this 
subsection may be construed to prohibit an au-
thorized official of a State from initiating or 
continuing any proceeding in a court of the 
State for a violation of any civil or criminal law 
of the State. 
Æ 
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