© Reuters. A person shops at a supermarket as inflation affected consumer prices in Manhattan, New York, U.S., June 10, 2022. REUTERS/Andrew Kelly/File Photo
WASHINGTON (Reuters) – U.S. President Joe Biden on Sunday called on snack companies to stop inflationary shrinking, which is when companies reduce the size of products but keep prices the same, describing the practice as “a fraud”.
“Some companies are trying to do something quickly by reducing products little by little and hoping you don't notice,” Biden said in a video posted to X, formerly known as Twitter, before Super Bowl LVIII.
“Give me a break. The American public is tired of being taken for fools. I call on businesses to put an end to this. Let's make sure businesses do the right thing now,” he said.
Biden, who offered no solutions or policies to address the practice, did not name any specific companies, but several brands are featured in the video, including Gatorade, Doritos, Breyers and Tostitos.
Senator Bob Casey, who chairs the Senate Health, Education, Labor and Pensions (HELP) Children and Families Subcommittee, released a report in December showing the impact of smaller product sizes on everything from toilet paper to cookies Airing.
The report noted that household paper products were 34.9% more expensive per unit than in January 2019, and about 10.3% of the increase was due to producers reducing the size of rolls and packages. .
It said the price of snacks like Oreos and Doritos had risen 26.4% over the same period, with shrinking portions accounting for 9.8% of the increase.
Although inflation appears to be slowing, the economy remains Americans' top overall concern, cited by 22% of respondents, as they have battled inflation and other aftershocks of the COVID-19 pandemic, according to a survey by Reuters/Ipsos published last month. .
Since taking office, Biden has advocated for lower prices at supermarkets, pressured drug makers to lower insulin costs, pressured hotel chains to lower rates, and sought to diversify the packaging industry. of meat after beef prices skyrocketed following the pandemic.
Casey's office said it had sent letters to trade associations representing consumer goods, food and beverage corporations demanding answers about pricing strategies, package sizing practices and how the inflationary squeeze affects customers. It was not immediately clear if they had responded.
