How Scamming Consumers Became Normalised

Overview

The video argues that “shrinkflation”—keeping prices high while reducing product size/quantity—has become normalized and functions like a consumer scam. It provides examples such as:

• Smaller quantities in common household and food items (e.g., fewer tissues per Kleenex box, fewer sheets per toilet paper roll)
• Packages containing fewer ounces/units than expected
• Retail bags with substantially less product than consumers assume

The host’s core claim is that these reductions are made subtle enough to exploit human perception, specifically how people only notice changes after a threshold known as the “just noticeable difference.” The implication is that companies reduce costs while maintaining revenue.

Why It’s Happening (Two Overlapping Explanations)

The video presents two explanations that overlap:

1) Business / Inflation “Cover Story”

Companies often attribute price increases to:

• Inflation
• Supply-chain pressures
• COVID-era disruptions
• Increased demand after reopening

The video also references the broader idea that large monetary policy and stimulus contributed to inflation and supply constraints.

2) Profit-Driven Pattern (“Greedflation”)

After inflation peaked, the video argues that:

• Prices continued rising
• Shrinkflation accelerated

It claims some firms used post-COVID conditions as cover to preserve or expand profit margins, even when input costs eased. Supporting points include:

• Producer input costs allegedly rose only modestly, while consumer prices rose more
• Claims and examples from multiple countries (e.g., US, UK, Australia, Canada) alleging excess profits and high margins

Related Practices

The video connects shrinkflation to other “value-reduction” strategies, including:

• “Skimpflation”: reducing ingredient quality by using cheaper substitutes
  • Example mentioned: Coca-Cola shifting from sugar to corn syrup over time

Overall, these tactics are framed as part of a broader system where companies reduce value (quantity and/or quality) while keeping prices stable or increasing them.

Pushback and Regulation Efforts

The video discusses attempts to respond, including:

• Public awareness and watchdog attention
  • Encouraging consumers to compare price-per-serving rather than just package price
• Government/regulator actions in some regions
  • Studies and fines aimed at improving labeling of downsized products
• Legislative efforts
  • A proposed “Shrinkflation Prevention Act” is noted as failing to pass
  • The video argues enforcement may be limited, and companies could still comply in ways that don’t meaningfully help consumers (e.g., inconvenient label placement)

Broader Economic Framing and Conclusion

The video suggests shrinkflation is symptomatic of larger economic forces, including concerns related to the currency/monetary system and the gradual erosion of consumer value over time.

The host concludes that meaningful change depends largely on:

• Consumer awareness
• Market pressure, where companies respond when customers reject excessive profit-taking and demand better value and quality.

Presenters / Contributors

• Dogo (host)

Mentioned organizations, contributors, and sources include:

• Ein Hearn Weber (psychology research referenced)
• NPR
• De Nederlandsche Bank (The Netherlands’ central bank) (paper cited)
• Forbes
• Paul Donovan (UBS Global Wealth Management)
• Groundwork Collaborative
• Consumer Federation of America (CFA)
• South Korean antitrust regulators
• FTC (referenced)
• Australian Institute / Australian government agencies (referenced)
• UK competition watchdog
• US Bureau of Economic Analysis (BEA) and National Income and Product Accounts (referenced)