“To direct the Federal Trade Commission to promulgate regulations that prohibit the practice of deceptive downsizing, and for other purposes.”
No CRS summary available for this bill.
This section sets forth congressional findings regarding the practice of "deceptive downsizing," whereby manufacturers reduce the size of consumer products, including food, while using packaging designed for larger versions of the same or similar products. The findings declare that this practice harms consumers by reducing purchasing power, driving inflation, and deceiving buyers who often do not notice the change until after purchase; asserts the federal government's role in preventing such unfair or deceptive acts; and states that the Act protects consumers by prohibiting sales of reduced-size products in previously used larger packaging without clear, conspicuous notice of the size change.
This section defines terms for purposes of the Act: (1) Commission, meaning the Federal Trade Commission; (2) consumer product, having the same meaning as in section 101 of the Magnuson-Moss Warranty—Federal Trade Commission Improvement Act (15 U.S.C. 2301) (i.e., tangible personal property distributed in commerce and normally used for personal, family, or household purposes); (3) deceptive downsizing, meaning the practice of a manufacturer selling a consumer product of reduced size using the same or substantially similar packaging as for any prior version of the same or substantially similar product that was of larger size; (4) larger size, meaning a consumer product of greater volume, size, mass, weight, or quantity relative to the product subject to the alleged deceptive downsizing; and (5) reduced size, meaning a reduction in volume, size, mass, weight, or quantity relative to any prior version of the same or substantially similar consumer product.
This section prohibits manufacturers of consumer products from engaging in deceptive downsizing. It establishes a safe harbor from liability if a reduced-size product is sold using the same or substantially similar packaging as the larger size but includes conspicuous, clear notice on the principal display panel stating both the larger size and the reduced size.
This section establishes Federal Trade Commission (FTC) enforcement of this Act by (1) treating violations as unfair or deceptive acts or practices under FTC Act section 18(a)(1)(B) (15 U.S.C. 57a(a)(1)(B)), which authorizes FTC rulemaking to define and prevent such acts; (2) incorporating all applicable terms, jurisdiction, powers, duties, penalties, privileges, and immunities of the FTC Act (15 U.S.C. 41 et seq.); and (3) preserving FTC authority under other laws.