Fight heats up over New York's soda ban
Critics are taking the new rule to court, saying that it hurts small and minority-owned business.
According to the Associated Press, critics who have challenged the ban in court are arguing that the rule would disproportionately hurt small and minority-owned businesses. Minority organizations in the state, led by beverage makers such as Coca-Cola (KO) and PepsiCo (PEP), are backing efforts to overturn the ban. The litigation is likely being closely watched and may lead to other efforts to restrict soda sales.
Then there's the issue of enforcement. Is New York City going to send health inspectors to dive through the trash cans of every deli in the city? There aren't enough hours in the day or money in the city's budget to make sure the rules are being followed. Odds of someone getting busted by the "soda police" seem remote at best.
Preventing the sale of large sugary sodas will do little to combat obesity. For one thing, there is no stopping someone from buying two smaller sodas instead of one large one. Another issue is more practical: Soda consumption has been the decline for almost a decade. Indeed, that's the reason why Coca-Cola and PepsiCo have been adding higher-growth non-soda drinks to their line-ups for the past few years.
But the biggest beef that critics of the New York City ban have is one of consistency. Why do sugary sodas get singled out for additional taxes when there are many other beverages, such as those offered by Starbucks (SBUX), that are loaded with even more calories? Also, why stop at regular soda? Diet soda may lack calories, but it isn't particularly healthy either.
People should be leery of simple solutions such as raising taxes on soda to solve complex problems such as obesity.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More in moneyNOW
- Abandoned no more: Schools become housing
- White Castle woos Valentine's Day diners
- Netflix shares soar on solid quarter
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages have continued their rebound with the Nasdaq (+0.2%) climbing into the green thanks to the relative strength of the technology sector (+0.2%).
Chipmakers have fueled a good portion of the rebound while top-weighted tech components remain somewhat mixed. Intel (INTC 24.83, +0.10) is higher by 0.4% while the broader PHLX Semiconductor Index trades up 0.5%.
Technology notwithstanding, the energy sector (+0.2%) has also contributed to the ... More
More Market News
Down for the short term, BHP Billiton, China Mobile, and McDonald's should have profitable futures.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'