
In a notable swipe against unscrupulous price gouging, New York Attorney General Letitia James has secured a hefty batch of baby formula valued at $675,000 for New Yorkers impacted by the formula crisis of 2022. This gesture follows an investigation into Marine Park Distribution Inc. and Formula Depot Inc., who, according to the findings, had pushed prices sky-high in blatant disregard of New York's laws on price gouging, as reported today by the Attorney General's office in a press release.
During the formula shortage, triggered by Abbott Laboratories' plant closure and product recall, the two companies were found hiking the prices on formula in some cases by over 60 percent, with innocent cans of baby formula that cost just $18 suddenly tagged at a steep $36. "Parents should never have to worry about unfair price spikes putting their children’s next meal at risk," Attorney General James said, with the OAG’s investigation revealing that particularly for families in dire need, this practice ran rampant. In the sweeping settlement, in addition to donating baby formula, Marine Park and Formula Depot will cough up a $75,000 penalty, as per the Attorney General's office.
Baby formula is one of the cornerstones in the nutritional intake for infants, with three-quarters of U.S. babies depending on it during their first six months. When New York parents faced the dread of their children potentially going without food due to the shortages and inflated prices, the Attorney General's office stepped up, issuing warnings to over 30 retailers statewide to cease their overcharging, as reminiscent of a May 2022 crackdown.
This past October, Attorney General James led a multi-state charge beckoning congressional leaders to enact a national prohibition on price gouging. Just earlier this year, 9,500 cans of formula were distributed in Buffalo and New York City—a boon from a price-gouging settlement with Walgreens. Under the settlement, Marine Park and Formula Depot are barred from future price gouging, painting a clearer line in the ethical sands for businesses everywhere.
The assistant attorney generals and their respective supervisors, as well as the former data scientist and her leaders, played executive roles in handling the case, as indicated by the Attorney General's office. For concerned citizens who sniff out the stench of future price gouging, the OAG has encouraged reports to be filed online or by hitting the dial button to 800-771-7755, to ensure the scales of consumer protection remain balanced.