“Downsizing” isn’t just about jobs — companies quietly shrink their products while keeping prices the same. Here’s how the practice works, and how to protect your wallet from it.
1 What “Downsizing” Really Means
The word “downsizing” was no doubt created by a student of George Orwell to hide the reality of what companies are actually doing. Because downsizing is rarely a good thing.
Companies “downsize” their workforces (that is, reduce, cut, slash their employees).
And they do the same to their products. They’ve been doing it for years, and largely getting away with it.
The examples are almost endless: a Hershey’s chocolate bar shrinks from 8 ounces to 6.8 ounces; boxes of Scott tissues contain 12 fewer tissues; Jif peanut butter’s jar drops from 18 ounces to 16 ounces; McCormick black pepper goes from 4 ounces to 3 ounces; Cottonelle and Charmin toilet paper not only reduce the number of sheets per roll, but shrink the width of the roll; and on and on and on. Coffee, toothpaste, ice cream, cereal, you name it: If there’s a way to shortchange the customer, corporations are in a never-ending quest to find it.
This practice has been a poorly kept secret for years, having been reported on by all the major news networks and newspapers, and is, of course, all over the Internet. But customers either don’t seem to care, or have bigger battles to fight in their daily lives, because the practice continues unabated.
2 Why Companies Shrink Their Products
Nevertheless, it’s a pure case of a deceptive marketing practice, if not outright cheating of the customer. When products are shrunk and the price remains the same—particularly if they’re sold in the same size package as before—what else would you call it?
Why do they do this? Money, of course. Specifically, profits. If they can get the same amount of money for less product, why wouldn’t they?
Their excuse for this egregious practice? “Customers would prefer less product rather than our raising our prices.” In what universe does this even make sense? Less product for the same amount of money means the price has risen. But, as we mentioned, it’s not always obvious to the buyer; until, that is, they can’t make as many cupcakes as they used to, or they run out of their favorite potato chips sooner than previously.
“We aim to provide the right value to our consumers – and may introduce new package sizes or adjust package sizes of our base products (upward or downward) based on delivering the right value,” Lynne Galia of Kraft Foods Corporate Affairs wrote to ABC News in 2012 when they covered this topic. Come again?
3 When Consumers Fight Back — and Win
Sometimes, with government or the courts behind them, consumers can win. Consumer Reports noted a 2015 settlement in a class-action suit in California in which StarKist was accused of underfilling cans of five-ounce tuna for over five years. The company denied wrongdoing, but agreed to distribute $8 million in cash and $4 million in vouchers to customers who filed a claim. The magazine reported similar outcomes against Coty, CVS, Hershey, Johnson & Johnson, Mars, and Walgreens. But such victories are rare.
4 How to Protect Your Wallet
So what can you do? Be aware of these practices and pay attention to the net contents and unit price rather than the size of the packages. Don’t fall for the package advertising, either. A frequent tipoff is a package redesign, especially if the lettering touts the contents as “new and improved,” or “(something) % more,” or such similar claims. And, as always, stick with Billshark to help you save money every way we can.
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Frequently Asked Questions
What does “downsizing” mean when it comes to products?
Downsizing is when companies quietly reduce the amount of product in a package while keeping the price the same. The article gives examples like a Hershey’s bar shrinking from 8 ounces to 6.8 ounces, Jif peanut butter dropping from 18 to 16 ounces, and Cottonelle and Charmin reducing both the number of sheets per roll and the width of the roll.
Why do companies shrink their products instead of raising prices?
Money, and specifically profits. If companies can get the same amount of money for less product, they will. Their stated excuse is that customers would prefer less product rather than higher prices, but giving less product for the same money is effectively a price increase — one that often isn’t obvious to the buyer until they run out sooner than before.
Can consumers ever win against product downsizing?
Sometimes, with government or the courts behind them. Consumer Reports noted a 2015 California class-action settlement in which StarKist was accused of underfilling five-ounce tuna cans for over five years. The company denied wrongdoing but agreed to distribute $8 million in cash and $4 million in vouchers to customers who filed a claim. Such victories, however, are rare.
How can I spot when a product has been downsized?
Pay attention to the net contents and unit price rather than the size of the package. Don’t fall for the package advertising. A frequent tipoff is a package redesign, especially when the lettering touts the contents as “new and improved” or claims a certain percentage more — these can mask a smaller quantity inside.
Which companies has downsizing affected, according to the article?
The article cites many examples, including Hershey’s, Scott tissues, Jif peanut butter, McCormick black pepper, and Cottonelle and Charmin toilet paper. It also notes legal outcomes involving StarKist, Coty, CVS, Hershey, Johnson & Johnson, Mars, and Walgreens. Coffee, toothpaste, ice cream, and cereal are mentioned as other commonly downsized categories.
