Congress Democrats push to stop 'shrinkflation' and target major food companies for the practice [View all]

Source: The Independent

12 hours ago


Two Democratic congresswomen are demanding that Coca-Cola, General Mills, and PepsiCo stop "profiteering" by shrinking the size of their products without lowering prices.

Massachusetts senator Elizabeth Warren and Pennsylvania representative Madeline Dean wrote letters to the three food and drink giants on Sunday calling for them to pay their fair share of taxes and cease engaging in "shrinkflation.”

They accused all three companies of reducing the size of their products, such as General Mills' Cocoa Puffs and PepsiCo's Gatorade, while charging the same price or higher – a stealthy twin of inflation that Joe Biden has denounced as "a rip-off.” Shrinkflation is one common alternative to raising costs for companies under pressure from – or, if you believe their critics, hoping to exploit – the general rise in costs during times of high inflation.

"People have noticed that their box of Cheerios and bag of Doritos are smaller, but prices are higher – and at the same time these giant corporations are paying lower tax rates than the average American," Warren told NBC News, which first reported the letters. "We can’t let them get away with this price gouging and tax dodging. It’s just plain wrong, and we’re fighting back."

Read more: https://www.independent.co.uk/news/world/americas/us-politics/warren-dean-shrinkflation-companies-b2625411.html