Democratic lawmakers accuse companies of shrinking product sizes while charging consumers the same price
It’s becoming a common experience for Americans going to the grocery store: your bag of chips seems lighter, your favorite drink comes in a slimmer bottle, and you’re running out of laundry detergent more quickly than usual. And yet things are staying the same price.
On Monday two Democratic lawmakers launched an attempt to get to the bottom of the phenomena, accusing three major companies, Coca-Cola, PepsiCo and General Mills, of shrinking the size of products while charging consumers the same price – a price-gouging practice known as “shrinkflation”.
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“Shrinking the size of a product in order to gouge consumers on the price per ounce is not innovation, it’s exploitation,” Warren and Dean said in a statement. “Unfortunately, this price gouging is a widespread problem, with corporate profits driving over half of inflation.”
The problem isn’t consumer education, it’s implicit market collusion.
Nailed it. And this is why your comment about notifying customers is also correct. Consumers barely have a choice. Everything is overpriced.
they aren’t going to spend 5 minutes comparing the prices of soda bottles so they can squeeze out less than a dime’s worth of savings.
It’s all about those percentages. My favorite chips went from 60¢/oz to 85¢/oz. Clearly not worth my time in terms of absolute price difference, but that’s a 41.67% increase. If I just ignore the amount through my whole grocery trip, the difference at the checkout line is huge. It becomes worth my time very quickly.
