Elizabeth Warren Proposes ‘Shrinkflation Prevention Act’ — What It Means for Your Grocery Bill
Written by
Yaël Bizouati-Kennedy
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Sen. Elizabeth Warren (D-Mass.), along with other senators, introduced the Shrinkflation Prevention Act last month, “to crack down on corporations that deceive consumers by selling smaller sizes of their products without lowering prices,” according to an announcement.
Shrinkflation refers to companies putting fewer or smaller products in their packages, while the prices remain the same or increase.
“From Doritos to Oreos to even a roll of toilet paper, big companies are giving you less but offering the same or higher price. Corporate executives thought we wouldn’t notice, but they’re wrong,” Warren said in the Feb. 28 announcement. “I’ll continue fighting for Massachusetts families by giving the Biden administration the tools it needs to crack down on shrinkflation and other forms of corporate greed.”
Even Cookie Monster recently chimed in on shrinkflation, posting on X (formerly Twitter): “Me hate shrinkflation! Me cookies are getting smaller.”
This could help Americans and their grocery bills, specifically with certain items.
In a recent Senate report, released by. Sen. Bob Casey (D-Pa.), the Bureau of Labor Statistics (BLS) listed the products most susceptible to shrinkflation.
Items that saw the biggest increase change due to shrinkflation from January 2019 to October 2023, are:
- household paper products, with a 10.3% increase
- snacks, with a 9.8% increase
- household cleaning products, with a 7.3% increase
- coffee with a 7.2% increase
- candy/chewing gum and ice cream, both with a 7% increase
As for specific brands, the report lists a slew of products that have seen their content decrease. For instance, a bag of Doritos saw a 5% decrease in weight; Charmin Ultra Soft toilet paper saw a 7% decrease in sheet count; and Smart Balance spread saw a 40% decrease in vegetable oil content.
The New York Times noted, “Companies do this because it works. Companies choose to shrink their products rather than charge more for a simple reason: Consumers often pay more attention to prices than sizes.”
When quantity goes down, “people might notice, but often, they don’t,” John Gourville, a professor at Harvard Business School told The New York Times. “You don’t get sticker shock.”
Warren’s Shrinkflation Prevention Act would direct the Federal Trade Commission (FTC) to promulgate regulations to establish shrinkflation as an unfair or deceptive act or practice and to prohibit manufacturers from engaging in shrinkflation; pursue civil actions against corporations engaging in shrinkflation; and authorize state attorneys general to bring civil actions against corporations engaging in shrinkflation, according to the announcement.
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