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Published on December 18, 2024
New York AG Letitia James Provides 3,300 Baby Formula Cans to Rochester Families Amid Restitution for Price GougingSource: Wikipedia/WBLS, CC BY 3.0, via Wikimedia Commons

New York Attorney General Letitia James has delivered thousands of baby formula cans to Rochester families grappling with food insecurity. The dispatch of 3,300 cans, valued at around $140,000, was derived from a payout tied to a case against Marine Park Distribution Inc. and its affiliate Formula Depot Inc. amid a widespread formula shortage in 2022.

The companies were found to have significantly hiked formula prices during this shortage by the Office of the Attorney General (OAG), in some instances doubling the cost per can. "During a nationwide shortage of baby formula, families in Rochester, like so many across the state, scrambled to find enough formula for their babies," Attorney General James stated. “Taking advantage of an emergency to squeeze profit from desperate families is shameful and illegal. Thanks to my office’s investigation, we’re delivering 3,300 cans of baby formula to Rochester families. I thank Foodlink and all of its partner organizations who will help distribute this baby formula and support families in need. My office will continue to go after any business that tries to exploit a crisis and cheat New Yorkers,” as noted by the Office of the New York State Attorney General.

The issue of price gouging struck at a particularly vulnerable moment for parents and guardians ensuring their infants' nourishment, as approximately three-quarters of infants in the U.S. rely on baby formula within their first six months. The settlement, which ultimately will see $675,000 worth of formula delivered to New Yorkers by November 2025, was announced as part of a broader effort to clamp down on businesses exploiting crises for monetary gain.

The current distribution caters to Rochester's Foodlink and its partner organizations, indicative of a concerted attempt to alleviate some pressures from families facing higher child poverty and food insecurity rates than other parts of the state. A figure as high as four in ten children living in poverty was reported for Rochester, nearly double the state's average. The Foodlink network has noted a sharp increase, 34 percent from 2023 to 2024, in visits to food pantries and meal programs, highlighting the stark need for such interventions, as detailed by the Attorney General's official website.

Lawmakers have rallied around Attorney General James' decisive actions, underscoring the ripple effects of such corporate malfeasance. Congressman Joe Morelle thanked James for giving families the peace of mind they deserve, especially during the holiday season. Rochester Mayor Malik D. Evans and State Senators Samra G. Brouk, Jeremy Cooney, as well as Assemblymembers Jen Lunsford, Demond Meeks, and Harry Bronson, echoed this sentiment, celebrating the relief for economically squeezed households.

The OAG's campaign against price gouging is persistent. In October 2024, Attorney General James led a coalition pushing for a national ban on the practice, and earlier in the year, distributed thousands of cans of formula across Buffalo and New York City as part of a settlement with Walgreens on similar grounds. New Yorkers are urged to stay vigilant and report possible price gouging instances to the OAG's helpline or online complaint system, according to the Attorney General's official website.

Resolving the price gouging matter and ensuing delivery of baby formula is a collaborative effort, with Assistant Attorney General Benjamin C. Fishman, under the supervision of Jane M. Azia and Laura J. Levine of the Consumer Frauds and Protection Bureau, at the helm. Data analysis by former Data Scientist Jasmine McAllister played a significant role in the case, under the leadership of Research and Analytics department heads.