Sponsors (8)
The bill strengthens consumer protections and enforcement against deceptive downsizing and improves market transparency, but it raises compliance, enforcement, and litigation costs that may be borne by businesses, government, and ultimately consumers.
Consumers—especially low-income shoppers—will get clearer protection from 'shrinkflation' because the bill defines deceptive downsizing and requires clearer notice and labeling, reducing the chance of being misled about product quantities and helping preserve purchasing power.
The Federal Trade Commission and other agencies are empowered to use established FTC authorities and to adopt rules to enforce the ban on deceptive downsizing, enabling stronger and more effective enforcement and remedies against unfair packaging practices.
Shoppers will find it easier and faster to compare unit prices and identify better value because improved labeling and disclosure around size reductions increases market transparency.
Manufacturers and small businesses will face increased compliance costs to redesign packaging, relabel products, and comply with new rules, costs that are likely to be at least partly passed on to consumers (raising retail prices).
Ambiguous terms (e.g., 'substantially similar packaging') and unspecified timing/limits for rulemaking create litigation and regulatory uncertainty that could increase legal risk and compliance complexity for producers.
Federal enforcement and monitoring demands will likely increase, raising administrative costs for agencies and potentially requiring more government resources to police deceptive packaging practices.
Based on analysis of 6 sections of legislative text.
Prohibits selling reduced‑size consumer products in the same packaging as larger versions unless the principal display panel plainly states the reduction and lists both sizes.
Introduced September 9, 2025 by Jose Luis Correa · Last progress September 9, 2025
Prohibits manufacturers from selling reduced-size consumer products in packaging that is the same or substantially similar to the packaging previously used for a larger version, unless the package’s principal display panel contains a clear, conspicuous notice that the product is reduced in size and lists both the larger and reduced sizes. The Federal Trade Commission is authorized to write implementing rules and will enforce violations under the FTC Act with existing enforcement powers and penalties. The bill sets definitions for “deceptive downsizing,” creates a narrow safe harbor when labeling requirements are met, and gives the FTC rulemaking authority to implement the prohibition but does not specify funding, timelines, or private lawsuits; enforcement is carried out by the FTC under its current statutory authority.