Senator Tammy Baldwin announces shrinkflation bill to crack down on grocery prices

“Whether it’s a bag of chips, paper towels, or coffee, we are seeing the same disturbing trend: big corporations are shrinking the size of their product but continuing to charge Wisconsin families the same price,” Baldwin said in a statement. 

If you’ve counted fewer sheets of toilet paper per roll or less dish soap per bottle in recent years, you’re not imagining things—and one Wisconsin senator is taking steps to stifle so-called “shrinkflation,” or the practice of companies shrinking product sizes without reducing prices. 

Last week, Senator Tammy Baldwin (D-WI) introduced the Shrinkflation Prevention Act, a bill that would establish penalties for “greedy companies” engaging in the price gouging tactic. 

The bill would direct the Federal Trade Commission (FTC) to enact regulations establishing shrinkflation as a deceptive practice. It would also permit the FTC and state attorneys general to pursue civil actions against companies accused of shrinkflation. 

“Whether it’s a bag of chips, paper towels, or coffee, we are seeing the same disturbing trend: big corporations are shrinking the size of their product but continuing to charge Wisconsin families the same price,” Baldwin said in a statement. 

Shrinkflation isn’t the only practice hurting Wisconsinites at the grocery store. Financial analysts partially attribute higher grocery prices to the COVID-19 pandemic, when companies used supply chain disruptions and crisis-induced inflation to explain away unnecessary price raises—a practice dubbed “greedflation.” 

And while pandemic-era price justifications have lost much of their soundness in recent months, grocery costs remain a frustration. A report from Consumer Affairs shows that grocery prices in Wisconsin rose 5.6% between November 2022 and November 2023. 

Leaders like Baldwin, who also introduced the Price Gouging Prevention Act last month, point to shrinkflation as another unfair tactic designed to hurt consumers. 

“Wisconsin families work hard, but when they check out at the grocery store, they are being ripped off by this corporate greed and we’ve got to put an end to it,” she said. 

Baldwin and the eight other senators endorsing the Shrinkflation Prevention Act aren’t alone in their concerns. President Joe Biden has also condemned shrinkflation, calling out corporations for engaging in tactics that hurt consumers’ wallets during a January appearance in South Carolina. 

“There are still too many corporations in America ripping people off,” Biden said. “Price gouging, junk fees, greedflation, shrinkflation.” 

Biden pointed to his administration’s continued efforts to combat high consumer costs as a hopeful sign for consumers. 

“The cost of eggs, milk, chicken, gas and so many other essential items have come down,” he said. “Americans, we’re tired of being played for suckers. And that’s why we’re going to keep these guys—keep on them and get prices down.”