New York Attorney General Letitia James has just completed her office's latest effort to combat price gouging with the distribution of over $13,500 in baby formula to Brooklyn families, reports indicate the donation sourced from Paragon USA & Co., LLC is the result of an investigation during the 2022 baby formula shortage that led to a settlement including a $10,000 penalty and free formula donations totaling $35,000.
This final installment, delivered to the Latino community through Mixteca, caps off Paragon's commitment under the settlement with Attorney General James who has emphasized, "Companies should never be able to raise prices and squeeze extra profits from struggling New Yorkers during a crisis" amid these times many looked to Mixteca's Executive Director, Lorena Kourousias, who praised the donation in a statement obtained by the press, saying it ensures "that families in our community have access to essential nutrition for their little ones during a time of great need."
The investigation found that Paragon increased their baby formula prices by more than 20 percent following the recall announcement by Abbott Laboratories, which had closed a manufacturing plant responsible for a significant portion of the nation's supply and New York's strict price-gouging laws came into play triggering warnings issued by James's office and eventual penalties for retailers and suppliers found exploiting the situation.
In her continued advocacy for New York consumers Attorney General James has apparently not only reprimanded but also redirected ill-gotten gains back to affected families securing various substantial settlements that distributed baby formula across New York boroughs and cities, when a settlement with Walgreens for similar price-gouging allegations led to over 9,500 cans of baby formula being distributed in Buffalo and New York City in early 2024, according to a press release from the Attorney General's Office.
To tackle potential price gouging, New Yorkers are urged to report concerns by filing online complaints or calling the designated number provided by the Attorney General's office, which sees these efforts spearheaded by team members such as Assistant Attorney General Benjamin C. Fishman and their Consumer Frauds and Protection Bureau, showcasing the OAG's commitment to economic justice and consumer protection.
