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.”
Ok, but how do you see the proposed legislation playing out? How do you expect congress to set a specific amount of product that can no longer be reduced? It’s not like anyone can trust congress to revisit the law when changes are needed. Companies will just start making “six packs” of individual things that used to be sold as a six units per container in order to maintain flexibility to shift quantities in the future. This will lead to way more packaging.
Regulating capitalism is a very good thing, but I don’t see how it makes any sense in this case with the proposed legislation.
No one has proposed any specific legislation. We’re talking about theoretical concepts. My only point is that saying “that’s not how capitalism works” is a dumb thing to say when it comes to rejecting an idea because we are collectively making up the rules for how capitalism works as we go along. It can work in whatever way we want it to.