### Lawmakers Accuse Major Companies of "Shrinkflation" Amid Rising Prices

American consumers are noticing a new trend at grocery stores: products that seem to be getting smaller while their prices stay the same. A group of lawmakers is now calling out three major companies—Coca-Cola, PepsiCo, and General Mills—over this phenomenon, known as "shrinkflation."

Senator Elizabeth Warren and US Representative Madeleine Dean have sent letters to the CEOs of these companies, accusing them of subtly reducing the sizes of products while maintaining prices, thereby charging consumers more per unit. The letters list specific instances: General Mills has allegedly reduced its family size box of Cocoa Puffs from 19.3 ounces to 18.1 ounces, and PepsiCo has decreased the size of Gatorade bottles from 32 ounces to 28 ounces.

While companies often claim that size reductions are due to changes in packaging that have nothing to do with pricing or economic conditions, skeptics argue that the widespread shrinking of products is suspicious. PepsiCo, for example, told NBC News in July that its 28-ounce Gatorade bottle has existed for years and that the company planned to distribute it more widely as part of a long-term strategy.

Warren and Dean's statements criticize the practice as exploitative rather than innovative. They argue that corporate profits are a significant driver of inflation and that the burden is unfairly placed on consumers. Social media users have also been vocal, with many posting images of products before and after shrinkage to highlight the issue.

The allegations extend beyond product sizes to corporate taxation. According to a report from the Institute on Taxation and Economic Policy, Coca-Cola, PepsiCo, and General Mills have paid tax rates of 15% or less from 2018 to 2022, despite significant profits. Warren and Dean condemned these companies for benefiting from corporate tax cuts instituted during Donald Trump's presidency and called for higher taxes on large corporations.

Neither Coca-Cola, PepsiCo, nor General Mills responded immediately to requests for comments on the lawmakers' letters. Meanwhile, the Bureau of Labor Statistics continues to factor in shrinkflation when calculating monthly inflation rates, adjusting for changes in product sizes to accurately reflect price changes.

By highlighting these practices, Warren and Dean aim to hold corporations accountable and push for legislative changes to address what they see as corporate exploitation of consumers.