Shrinkflation Reduction Act

The Shrinkflation Reduction Act requires manufacturers to label consumer products when they reduce product size without proportionally lowering the price (shrinkflation). This directly affects manufacturers of consumer goods (defined under federal law) and informs consumers about size reductions. The bill mandates the Federal Trade Commission (FTC) to create labeling rules within one year, treating non-compliance as an unfair business practice under existing FTC enforcement. Violations would face penalties under the FTC Act, with $1 million authorized to implement these rules.