The 'Deceptive Downsizing Act' Fights Shrinkflation: Companies Must Clearly Label Reduced Product Sizes

If you’ve ever opened a bag of chips only to find it half-empty, or noticed your favorite cereal box holds less while costing the same, you’ve experienced “shrinkflation.” The Deceptive Downsizing Prohibition Act of 2025 is Congress’s attempt to put a stop to this sneaky practice.

This bill targets manufacturers who reduce the amount of product—whether volume, weight, or quantity—but keep using the same or “almost identical” packaging as the larger, old version (SEC. 3). Essentially, they’re trying to prevent companies from tricking you into thinking you’re getting the same deal you used to.

The End of Sneaky Shrinking

The core of the Act is a clear ban on this deceptive downsizing (SEC. 4). A company can no longer secretly reduce the contents of a product while maintaining the visual illusion that nothing has changed. This is a direct response to the finding that this practice hurts consumers and contributes to perceived inflation (SEC. 2).

However, the law doesn't ban downsizing entirely—it just bans the deception. Manufacturers get a “safe harbor” if they follow strict disclosure rules. If a company decides to sell a smaller product in the old packaging, they must place a clear, easy-to-read notice right on the front of the package (the principal display panel). This notice must explicitly state the original, larger size and the new, reduced size (SEC. 4).

Think about that tub of ice cream that used to be 64 ounces but is now 56. Under this Act, the manufacturer can’t just quietly change the fine print on the back. They’d have to put a bold notice on the lid or front panel saying something like: “SIZE REDUCED: Was 64 oz, Now 56 oz.” This means you, the busy shopper, can spot the change instantly and decide if the new price is worth the smaller amount.

Who’s Policing the Pantry?

The Federal Trade Commission (FTC) is in charge of making sure this new rule works. The Act gives the FTC the authority to write the specific regulations needed to enforce the ban (SEC. 5). More importantly, violating this new rule is treated exactly like an “unfair or deceptive act or practice” under existing FTC law (SEC. 6). This means the FTC can use all its current enforcement tools—including fines and legal action—against companies that try to pull a fast one.

For manufacturers and producers, this means compliance costs are coming. They will need to invest in new packaging designs, printing processes, and quality control to ensure the required size disclosures are prominent and accurate. While this is a headache for their operations, it’s a win for consumers seeking transparency.

The Real-World Impact

For everyday people, this legislation is a direct fight against hidden costs. When you’re trying to stretch your dollar at the grocery store, knowing exactly how much product you’re getting is crucial. This Act removes the guesswork and forces companies to be upfront about product changes. It means less time squinting at microscopic font on the back of the box and more time making informed decisions about where to spend your money.

While the definition of “almost identical” packaging might be subjective and could lead to some early legal challenges, the safe harbor provision is clear: if manufacturers disclose the change prominently, they are compliant. This gives them a straightforward path forward, but it prioritizes the consumer's right to know over the manufacturer's desire for a quiet price hike.