"Shrinkflation" Lawsuits: Consumers Fight Back

You pick up your favorite box of crackers or a tin of coffee, and it feels lighter. The price is the same, but when you check the net weight, you realize you are getting less for your money. This phenomenon is known as “shrinkflation,” and for years, shoppers felt they had no choice but to accept it. That dynamic is changing. Frustrated consumers are now taking legal action against major brands, filing class-action lawsuits claiming that deceptive packaging and hidden downsizing constitute consumer fraud.

The Legal Argument: Deception vs. Discretion

Companies have the right to change the size of their products or the prices they charge. However, the legal battles centering on shrinkflation rarely focus on the price hike itself. Instead, they focus on deceptive packaging, technically known as “non-functional slack-fill.”

Plaintiff attorneys argue that when a company reduces the amount of product inside a container but keeps the box, bag, or tin the exact same size, they are misleading the consumer. If a shopper relies on the visual size of the packaging to make a purchasing decision, paying the same price for empty space (air) can be viewed as a violation of consumer protection laws.

The McCormick Black Pepper Case

One of the most famous precedents for current litigation involves McCormick & Company. Several years ago, the spice giant faced a class-action lawsuit after reducing the amount of black pepper in their standard metal tins from 4 ounces to 3 ounces. Crucially, they kept the metal tin the exact same size.

Competitor Watkins Inc. and consumers sued, arguing that shoppers assumed the tin contained the standard amount. McCormick eventually agreed to pay $2.5 million to settle the claims. This case laid the groundwork for the current wave of scrutiny, proving that maintaining package size while reducing content is a liability.

Recent Targets and "Slack-Fill" Litigation

The concept of “slack-fill” is central to these lawsuits. The FDA defines slack-fill as the empty space in a package that is filled to less than its capacity. Slack-fill is legal if it protects the product (like the air in a bag of potato chips that prevents crushing). It becomes illegal non-functional slack-fill when it serves no purpose other than to make the product look bigger than it is.

Recent legal actions and consumer complaints have targeted a variety of industries:

• Boxed Candy: Lawsuits have been filed against movie theater candy brands where opaque boxes contain large plastic trays and very little actual candy.
• Household Items: Detergent and toothpaste brands have faced scrutiny for large bottles with indented bottoms or significant empty space that mimics a larger volume.
• Snack Foods: Wise Foods faced litigation regarding the amount of air in their chip bags compared to the actual product weight, with plaintiffs arguing the empty space was excessive even for product protection.

Political Pressure and Legislative Action

The pushback against shrinkflation has moved beyond the courtroom and into the halls of Congress. In early 2024, President Biden released a video specifically calling out snack companies for shrinking products while maintaining prices. He referred to it as a “rip-off,” signaling that federal regulators might take a harder look at these practices.

Senator Bob Casey (D-PA) introduced the Shrinkflation Prevention Act, which seeks to authorize the Federal Trade Commission (FTC) to classify shrinkflation as an unfair or deceptive practice. If passed, this legislation would give regulators the power to pursue civil penalties against companies that downsize products without clear notification to consumers.

How Brands Try to Hide the Change

Companies use specific tactics to make shrinkflation difficult to spot. Understanding these methods helps explain why consumers feel deceived enough to sue.

1. The “New Look” Label: A brand might redesign the label to distract from a weight reduction. A bright “New Look!” banner draws the eye away from the net weight, which may have dropped from 16oz to 14.5oz.
2. Indented Bottoms: Jars of peanut butter or pasta sauce may look the same on the shelf, but a deeper indentation (punt) on the bottom reduces the internal volume.
3. Whipped Products: In dairy and cosmetics, companies may “whip” the product to add air. A tub of yogurt or moisturizer looks full, but the weight has decreased significantly.
4. Count Reduction: This is common in toilet paper and paper towels. A “Mega Roll” that used to have 300 sheets might quietly drop to 280 sheets.

What Consumers Can Do

While class-action lawsuits take years to resolve, shoppers have immediate tools to fight back against value erosion.

• Check the Unit Price: Ignore the price tag of the item and look at the “price per ounce” or “price per unit” listed on the shelf tag. This is the only way to accurately compare value across brands.
• Read the Net Weight: Do not trust the size of the box. Read the net weight printed on the bottom corner of the package.
• Report Deception: If you open a package and find it is mostly empty space with no functional purpose, you can report it to your state attorney general or the FTC.
• Follow Watchdogs: Websites like Mouse Print and consumer advocacy groups track these changes closely, often identifying shrinkflation long before the average shopper notices.

Frequently Asked Questions

Is shrinkflation illegal? Technically, no. Companies are allowed to change the size and price of their products. It only becomes a legal issue if the packaging is deceptive (slack-fill) or if the labeling makes false claims about the quantity.

What is the difference between functional and non-functional slack-fill? Functional slack-fill protects the product (like air in a chip bag) or is a result of the manufacturing process. Non-functional slack-fill is empty space that serves no purpose other than to give the illusion of more product.

Can I get money from a shrinkflation lawsuit? If a class-action lawsuit is settled, consumers who purchased the specific product during the relevant time frame are often eligible for a cash payment or vouchers. You typically need to submit a claim form on the settlement website.

Why don’t companies just raise prices? Marketing psychology suggests that consumers are more sensitive to price increases than size reductions. Shoppers notice if a bag of coffee goes from $10 to $12, but they are less likely to notice if it goes from 16oz to 14oz while staying at $10.