Lawmakers Charge Companies with Shrinkflation, Tax Avoidance

Senator Elizabeth Warren and Representative Madeleine Dean have accused Coca-Cola, PepsiCo, and General Mills of engaging in 'shrinkflation', which involves reducing product sizes without lowering prices, thus profiting at the expense of consumers. They claim that such practices are a form of price gouging, contributing to inflation, and are accompanied by tax avoidance, as these companies reportedly pay lower tax rates than average Americans. Warren and Dean have sent letters to the CEOs of these companies demanding the cessation of these practices, highlighting specific examples like General Mills' reduction of Cocoa Puffs' size and PepsiCo's resizing of Gatorade bottles. The lawmakers also criticize these companies for their 'pattern of profiteering' and emphasize that corporate profits are driving a significant portion of inflation. The Consumer Brands Association defends the companies, stating that recent markups are consistent with past economic recoveries. Responses from the companies to these allegations are currently pending.