ABSTRACT
This chapter presents an overview of the economics of weights and measures regulation in the United States. The National Institute of Standards and Technology has estimated that weights and measures regulation has an impact on approximately 50 percent of the Gross Domestic Product of the United States. This would amount to about $11 trillion of goods and services in 2019. Nearly everything consumers buy is sold from bulk or in packaged form using a scale, meter or another weighing or measuring device. The costs of compliance with weights and measures regulations regarding package labeling, price scanning, compliant weighing and measuring devices, regulatory license fees and other requirements constitute an economic burden on industry. A portion of the weights and measures regulatory compliance costs is passed to the final consumer. These costs are small compared with potential losses from overcharges. The overcharge to consumers from even small measurement or pricing errors is multiplied by a large number of transactions resulting in significant cumulative losses to consumers. Regular inspections by regulators help minimize these errors.
