# Price Gouging vs Shrinkflation: What's the Difference?

You hear both terms used when grocery prices feel unfair. But they are not the same thing — and understanding the difference helps you know what to do about each one.

## What Is Price Gouging?

Price gouging is when retailers or sellers dramatically raise prices during a crisis, shortage, or period of high demand. It is most commonly associated with:

- Hurricanes and natural disasters (gas, water, generators)
- Supply chain disruptions
- Public health emergencies

**Example:** A hardware store raising generator prices from $500 to $1,500 the day before a hurricane makes landfall.

Price gouging is **illegal in many states** during declared emergencies. Most states have consumer protection laws that prohibit excessive price increases when a state of emergency has been declared.

## What Is Shrinkflation?

Shrinkflation is when manufacturers reduce the size or quantity of a product while keeping the price the same — or raising it. The per-unit cost increases without the packaging change being obvious at first glance.

**Example:** A cereal brand reducing its box from 18 oz to 15.5 oz while keeping the price at $4.99. The shelf price did not change. The unit price went up 16%.

Shrinkflation is **legal** in the US. Manufacturers are required to disclose net weight, but they do not need to announce when a product gets smaller.

## Key Differences

| | Price Gouging | Shrinkflation |
|---|---|---|
| **Who does it** | Retailers and sellers | Manufacturers |
| **When it happens** | Crises, shortages, emergencies | Continuously, as a standard practice |
| **How it works** | Raising prices sharply | Reducing product size |
| **Legal status** | Illegal during declared emergencies in most states | Legal year-round |
| **Consumer response** | Report to state attorney general | Track unit prices; switch products |
| **Detection** | Obvious price increases | Requires unit price calculation |

## How CartSnitch Handles Both

**CartSnitch tracks shrinkflation automatically.** We monitor unit prices across our tracked products and alert you when a product you buy regularly gets smaller or more expensive.

**Price gouging is different.** CartSnitch does not currently detect price gouging — it requires monitoring retail prices during specific time periods and comparing against pre-crisis baselines, which is outside our current scope.

If you encounter what you believe is price gouging:
- **Document the prices** — take screenshots
- **Report it** — contact your state attorney general's office
- **Shop elsewhere** — if possible

## Can Both Happen at Once?

Yes. A product could experience shrinkflation (getting smaller over time) AND be subject to price gouging during an emergency. For example:

- A bottle of water that shrank from 24 oz to 16 oz over five years (shrinkflation)
- The same product being sold for triple its normal price during a flood emergency (price gouging)

Both are harmful to consumers. Only one is currently illegal.

## The Common Ground

Both price gouging and shrinkflation share a common feature: they exploit the fact that most consumers don't have access to real-time price data.

CartSnitch was built to give that data to consumers. For shrinkflation today — and honest, transparent grocery pricing.