Lawmakers Demand End to 'Shrinkflation' by Major Food and Beverage Companies

Sen. Elizabeth Warren and Rep. Madeleine Dean accuse corporations of profiteering and tax dodging through reduced product sizes at unchanged prices.

Warren and Dean have sent letters to CEOs of General Mills, Coca-Cola, and PepsiCo, demanding transparency on pricing and tax practices.
The lawmakers argue that shrinkflation, where product sizes are reduced but prices remain the same, is a form of consumer exploitation.
Reports indicate significant price increases in household and snack products, with shrinkflation accounting for a notable portion of these hikes.
Critics within the industry defend the practice as a necessary response to rising costs, offering smaller products to avoid direct price increases.
The Shrinkflation Prevention Act, proposed by Sen. Bob Casey, aims to regulate and penalize deceptive pricing strategies.