Consumer concerns over shrinkflation are finally gaining attention, having long been overshadowed by corporate profit growth outpacing inflation. Efforts by both the Federal Trade Commission (FTC) and certain members of Congress aim to outlaw shrinkflation and empower governmental bodies to take legal action against companies practicing it. U.S. Representatives Christopher Deluzio and Marie Gluesenkamp Pérez have introduced the Shrinkflation Prevention Act, proposing penalties for companies that reduce product sizes without adjusting prices.
Senator Elizabeth Warren highlights the discrepancy between increased profits and the use of inflation as a smokescreen to mask shrinkflation. Examples like fewer chips in a bag of Doritos or fewer sheets in a roll of toilet paper underscore how consumers pay the same for less. Despite bipartisan efforts, some Republicans oppose the proposed legislation, concerned about its impact on businesses.
Shrinkflation, a practice dating back to Medieval times, has evolved into a subtle strategy for companies to maintain or boost profits. Products across various categories, from cereal to toilet paper, have been affected. Kyle James suggests consumer hacks to mitigate the effects, such as buying locally produced ice cream or paying attention to price-per-ounce for orange juice. While shrinkflation presents challenges, savvy consumer strategies can help navigate its impact on everyday purchases.