[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7825 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7825

    To direct the Federal Trade Commission to issue regulations to 
establish shrinkflation as an unfair or deceptive act or practice, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2024

Ms. Perez (for herself and Mr. Deluzio) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
    To direct the Federal Trade Commission to issue regulations to 
establish shrinkflation as an unfair or deceptive act or practice, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shrinkflation Prevention Act of 
2024''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) According to the Bureau of Economic Analysis, from the 
        third quarter of 2020 to the second quarter of 2022, corporate 
        profits rose by 75 percent, and Federal Reserve research found 
        that 42 percent of inflation over that same time period went 
        toward greater corporate profits.
            (2) Shrinkflation, or product downsizing, occurs when a 
        company decreases the amount or size of a consumer product and 
        charges the same price, or a higher price, for such smaller 
        product.
            (3) Companies seek to deceive consumers when they practice 
        shrinkflation without clearly disclosing the size change and 
        per unit price increase of a product.
            (4) According to the Bureau of Labor Statistics, roughly 10 
        percent of inflation in some consumer product categories is 
        driven by shrinkflation.
            (5) Deceptive shrinkflation tactics allow companies to 
        profit off unaware consumers, as academic research shows that 
        consumers are less sensitive to changes in product size than to 
        changes in price.
            (6) Shrinkflation is disrupting the ability of families in 
        the United States to save money.

SEC. 3. PROHIBITION OF SHRINKFLATION.

    (a) Definition of Shrinkflation.--
            (1) In general.--In this Act, the term ``shrinkflation'' 
        means the practice of downsizing, or reducing the amount or 
        size of a consumer product (as defined in section 101 of the 
        Magnuson-Moss Warranty--Federal Trade Commission Improvement 
        Act (15 U.S.C. 2301)) while not decreasing the price of such 
        product by a commensurate amount.
            (2) Modifications.--The Federal Trade Commission (in this 
        section referred to as the ``Commission'') may promulgate 
        regulations under section 553 of title 5, United States Code, 
        to modify the definition in paragraph (1) as the Commission 
        considers appropriate.
    (b) Prohibition.--Not later than 18 months after the date of 
enactment of this Act, the Commission shall promulgate regulations 
under section 553 of title 5, United States Code, to prohibit any 
manufacturer from engaging in shrinkflation.

SEC. 4. ENFORCEMENT.

    (a) Enforcement by the Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        a regulation promulgated under section 3(b) shall be treated as 
        a violation of a rule defining an unfair or deceptive act or 
        practice under section 18(a)(1)(B) of the Federal Trade 
        Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Powers of the commission.--
                    (A) In general.--The Commission shall enforce the 
                regulations promulgated under section 3(b) in the same 
                manner, by the same means, and with the same 
                jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this Act.
                    (B) Privileges and immunities.--Any person who 
                violates a regulation promulgated under section 3(b) 
                shall be subject to the penalties and entitled to the 
                privileges and immunities provided in the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.).
                    (C) Authority preserved.--Nothing in this Act shall 
                be construed to limit the authority of the Commission 
                under any other provision of law.
                    (D) Rulemaking.--The Commission shall promulgate in 
                accordance with section 553 of title 5, United States 
                Code, such rules as may be necessary to carry out this 
                Act.
    (b) Enforcement by States.--
            (1) In general.--In any case in which the attorney general 
        of a State has reason to believe that an interest of the 
        residents of the State has been or is threatened or adversely 
        affected by the engagement of any person in a practice that 
        violates a regulation promulgated under section 3(b), the 
        attorney general of the State may, as parens patriae, bring a 
        civil action on behalf of the residents of the State in an 
        appropriate district court of the United States--
                    (A) to enjoin further violation of such regulation 
                by such person;
                    (B) to compel compliance with such regulation;
                    (C) to obtain a permanent, temporary, or 
                preliminary injunction;
                    (D) to obtain civil penalties;
                    (E) to obtain damages, restitution, or other 
                compensation on behalf of such residents; or
                    (F) to obtain any other equitable relief deemed 
                appropriate by the court.
            (2) Rights of the commission.--
                    (A) Notice to the commission.--
                            (i) In general.--Except as provided in 
                        clause (iii), the attorney general of a State 
                        shall notify the Commission in writing that the 
                        attorney general intends to bring a civil 
                        action under paragraph (1) not later than 10 
                        days before initiating the civil action.
                            (ii) Contents.--The notification required 
                        by clause (i) with respect to a civil action 
                        shall include a copy of the complaint to be 
                        filed to initiate the civil action.
                            (iii) Exception.--If it is not feasible for 
                        the attorney general of a State to provide the 
                        notification required by clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall notify the 
                        Commission immediately upon instituting the 
                        civil action.
                    (B) Intervention by the commission.--The Commission 
                may--
                            (i) intervene in any civil action brought 
                        by the attorney general of a State under 
                        paragraph (1); and
                            (ii) upon intervening--
                                    (I) be heard on all matters arising 
                                in the civil action; and
                                    (II) file petitions for appeal of a 
                                decision in the civil action.
            (3) Investigatory powers.--Nothing in this subsection may 
        be construed to prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of the State to conduct investigations, to administer 
        oaths or affirmations, or to compel the attendance of witnesses 
        or the production of documentary or other evidence.
            (4) Action by the commission.--If the Commission institutes 
        a civil action or an administrative action with respect to a 
        violation of a regulation promulgated under section 3(b), the 
        attorney general of a State may not, during the pendency of 
        such action, bring a civil action under paragraph (1) against 
        any defendant named in the complaint of the Commission for the 
        violation with respect to which the Commission instituted such 
        action.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in--
                            (i) the district court of the United States 
                        that meets applicable requirements relating to 
                        venue under section 1391 of title 28, United 
                        States Code; or
                            (ii) another court of competent 
                        jurisdiction.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
            (6) Actions by other state officials.--
                    (A) In general.--In addition to civil actions 
                brought by attorneys general under paragraph (1), any 
                other official of a State who is authorized by the 
                State to do so may bring a civil action under paragraph 
                (1), subject to the same requirements and limitations 
                that apply under this subsection to civil actions 
                brought by attorneys general.
                    (B) Savings provision.--Nothing in this subsection 
                may be construed to prohibit an authorized official of 
                a State from initiating or continuing any proceeding in 
                a court of the State for a violation of any civil or 
                criminal law of the State.
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