New Yorkers Warned Of Baby Formula Price Gouging

NEW YORK — There have been shortages of baby formula because of recalls and supply chain disruptions, says New York Attorney General Letitia James.

James recently issued a warning to retailers that price gouging is illegal — and urged New Yorkers to be on the lookout for unfair pricing on baby formula. She asked New Yorkers to report dramatic price increases to her office. There are reports of baby formula being sold online for prices far exceeding its retail value, the Office of the Attorney General (OAG) said.

Parents finding it difficult to track down formula should speak with their child’s doctor before attempting to water down formula or make their own, both of which can be potentially dangerous to a child, James said. James asked that anyone with extra unopened, unexpired formula consider donating it to their local food pantry.

“The national baby formula shortage is terrifying for parents concerned about how to feed their children,” James said via news release. “The last thing any family needs is to be price gouged on critical nutrition for their little ones, which is why I am putting profiteers seeking to take advantage of this crisis on notice. If New Yorkers see exorbitant price increases for baby formula, I encourage them to report it to my office immediately. Anyone who seeks to take advantage of this crisis is on notice."

New York law bans merchants from taking unfair advantage of consumers by selling goods or services that are vital to their health, safety, or welfare for an "unconscionably excessive" price, according to the OAG.

The White House recently announced plans to import more formula and crack down on price gouging, Today reported. While President Joe Biden met with retailers and manufacturers like Walmart, Target and Gerber, there is no timetable on when more baby formula will be on the shelves at a fair price, according to Today.

Congressman Tom Suozzi (D — New York) called on President Joe Biden to invoke the Defense Production Act to increase the production of baby formula.

“Raising a newborn is already a difficult and stressful job for any parent, but not being able to find the appropriate formula in this country is unacceptable," Suozzi said. "We need to immediately invoke the Defense Production Act to address this crisis and provide relief to struggling families."

Nassau County Legislator Joshua A. Lafazan (D — Woodbury) on Monday announced proposals to address the baby formula shortage. As of this week, 40 percent of the top-selling baby formulas are out of stock, said Lafazan.

The proposal included a new independent Nassau County hotline to report price gouging of baby formula in stores and increased investigations from the Department of Consumer Affairs to hold price gougers accountable. Lafazan called on the FDA to allow for the importation of formula approved by "competent regulators" such as the EU, Canada, and Australia.

“It is a terrible thing to take advantage of people in a crisis who are desperate with few options,” Lafazan said. “It is utterly reprehensible and morally repugnant to do so when those affected are mothers and their infants. We need to get pricing under control. We need to hold price gougers accountable. And we need our federal government to help, and help now.”

Baby formula production in the United States currently comes from three companies, according to Lafazan. Allowing baby formula to be imported at a time when the companies are not able to meet consumer demand would help Long Island families, the legislator said.

Because of the nationwide shortage, the OAG advised consumers to buy only as much formula as they need and not to unnecessarily stock up, as panic buying may intensify the shortage and could encourage sellers to engage in illegal price gouging. The OAG also reminds consumers that it is not price gouging for retailers to limit the amount of formula they sell to each customer.

When reporting price gouging to OAG, consumers should:

• Report the specific increased prices, the dates, and places that they saw the increased prices, and the types of formula being sold.
• Provide copies of their sales receipts and photos of the advertised prices, if available.

New Yorkers should report potential concerns about price gouging to OAG by filing a complaint online or call 800-771-7755.