Sponsors (8)
The bill strengthens consumer protections and market transparency against deceptive downsizing by giving the FTC rules and enforcement tools, but it raises compliance, enforcement, and litigation risks that could increase costs for businesses, consumers, and government oversight.
Consumers — especially price-sensitive and low-income shoppers — will get clearer, more accurate information when products are downsized, reducing misleading 'shrinkflation' and helping them know what they are actually buying.
Shoppers will find it easier and faster to compare unit prices and identify better value because packaging and labels must disclose size reductions and quantities more transparently.
The FTC gains clearer and stronger enforcement authority (including Section 18 tools and established FTC remedies), enabling more effective action against deceptive or unfair downsizing practices and providing remedies for victims.
Manufacturers and small businesses will face increased compliance costs to redesign packaging and relabel products, costs that are likely to be passed on to consumers through higher retail prices.
Ambiguous terms (e.g., 'substantially similar packaging') and unspecified timing or substantive limits may create regulatory uncertainty and trigger litigation or enforcement disputes for producers.
Expanded FTC enforcement authority and the possibility of larger penalties raise businesses' enforcement risk and potential legal liabilities, increasing compliance costs and financial exposure.
Based on analysis of 6 sections of legislative text.
Prohibits selling reduced-size consumer products in the same or substantially similar packaging unless a conspicuous notice lists both the larger and reduced sizes.
Official title: To direct the Federal Trade Commission to promulgate regulations that prohibit the practice of deceptive downsizing, and for other purposes.
Introduced September 9, 2025 by Jose Luis Correa · Last progress September 9, 2025
Prohibits manufacturers from selling reduced-size consumer products in the same or substantially similar packaging as a previously larger version unless the package’s principal display panel includes a clear, conspicuous notice that the product has been reduced in size and lists both the larger and reduced sizes. The Federal Trade Commission enforces the rule by treating violations as unfair or deceptive practices under the FTC Act and is authorized to issue implementing regulations under the Administrative Procedure Act. The bill defines key terms (consumer product, deceptive downsizing, larger size, reduced size), creates a narrow safe harbor tied to specific notice requirements, and gives the FTC rulemaking and enforcement authority to implement the prohibition.