Formula Donation Comes from AG James’ Settlement with Baby Formula Suppliers for Price Gouging During 2022 ShortageAG James Has Secured More Than $800,000 in Baby Formula Donations from Price Gouging CasesNew York Attorney General Letitia James today delivered over $100,000 worth of baby formula from Marine Park Distribution, Inc. (Marine Park) for families in Central New York. The donation of more than 7,000 bottles and cans of formula is part of the $675,000 worth of baby formula that Attorney General James secured as a result of her settlement with Marine Park and its affiliate, Formula Depot, Inc. (Formula Depot), for illegal price gouging during the nationwide formula shortage in 2022. An investigation by the Office of the Attorney General (OAG) found that Marine Park and Formula Depot raised prices of formula during the shortage in violation of New York’s price gouging laws. At times, Marine Park doubled the price of a can of formula, charging its customers up to $36 for a can of formula that cost $18 before the shortage. The OAG secured today’s donation for the Food Bank of Central New York, which serves families in need throughout the region.
“No parent should have to struggle to buy formula for their baby because corporations are attempting to profit from a crisis,” said Attorney General James. “Price gouging during an emergency is illegal, and my office will continue to go after any company that tries to take advantage of hardworking New Yorkers. As the holiday season approaches, I am proud to secure this donation of baby formula for Central New York families.”
In 2022, a manufacturing plant closure and recall created a major baby formula shortage nationwide. As supply decreased and prices rose, families struggled to find enough formula to feed their children. Three out of four infants in the U.S. consume baby formula during the first six months of their lives, which meant significant hardship for parents throughout New York and the nation.
An OAG investigation found that in the midst of this crisis, Marine Park, which sells baby formula to retailers, and Formula Depot, which sells to consumers online, raised prices over 60 percent more than was allowed under the law during the shortage, generating hundreds of thousands of dollars more in revenue. One consumer, who relied on Formula Depot for formula safe for babies with milk and soy allergies, bought a case of formula for $190, only to be charged $245 for the same case just a few weeks later.
New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices.
In December 2024, Attorney General James announced a settlement with Marine Park and Formula Depot requiring them to provide $675,000 of baby formula, to be donated by Attorney General James to New Yorkers in need. In addition, the two companies are barred from future price gouging and have paid a $75,000 penalty to the state.
Attorney General James today delivered $100,000 worth of baby formula to the Food Bank of Central New York distribution center, which serves Cayuga, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, and St. Lawrence counties. With this settlement, Attorney General James has secured free baby formula for families in Rochester, the Bronx, and the Capital Region. Today’s donation is the final delivery of the settlement. To date, Attorney General James has secured over $800,000 in baby formula donations as a result of holding price gougers accountable.
New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.
New York Attorney General Letitia James today delivered over $100,000 worth of baby formula from Marine Park Distribution, Inc. (Marine Park) for families in Central New York. The donation of more than 7,000 bottles and cans of formula is part of the $675,000 worth of baby formula that Attorney General James secured as a result of her settlement with Marine Park and its affiliate, Formula Depot, Inc. (Formula Depot), for illegal price gouging during the nationwide formula shortage in 2022. An investigation by the Office of the Attorney General (OAG) found that Marine Park and Formula Depot raised prices of formula during the shortage in violation of New York’s price gouging laws. At times, Marine Park doubled the price of a can of formula, charging its customers up to $36 for a can of formula that cost $18 before the shortage. The OAG secured today’s donation for the Food Bank of Central New York, which serves families in need throughout the region.
“No parent should have to struggle to buy formula for their baby because corporations are attempting to profit from a crisis,” said Attorney General James. “Price gouging during an emergency is illegal, and my office will continue to go after any company that tries to take advantage of hardworking New Yorkers. As the holiday season approaches, I am proud to secure this donation of baby formula for Central New York families.”
In 2022, a manufacturing plant closure and recall created a major baby formula shortage nationwide. As supply decreased and prices rose, families struggled to find enough formula to feed their children. Three out of four infants in the U.S. consume baby formula during the first six months of their lives, which meant significant hardship for parents throughout New York and the nation.
An OAG investigation found that in the midst of this crisis, Marine Park, which sells baby formula to retailers, and Formula Depot, which sells to consumers online, raised prices over 60 percent more than was allowed under the law during the shortage, generating hundreds of thousands of dollars more in revenue. One consumer, who relied on Formula Depot for formula safe for babies with milk and soy allergies, bought a case of formula for $190, only to be charged $245 for the same case just a few weeks later.
New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices.
In December 2024, Attorney General James announced a settlement with Marine Park and Formula Depot requiring them to provide $675,000 of baby formula, to be donated by Attorney General James to New Yorkers in need. In addition, the two companies are barred from future price gouging and have paid a $75,000 penalty to the state.
Attorney General James today delivered $100,000 worth of baby formula to the Food Bank of Central New York distribution center, which serves Cayuga, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, and St. Lawrence counties. With this settlement, Attorney General James has secured free baby formula for families in Rochester, the Bronx, and the Capital Region. Today’s donation is the final delivery of the settlement. To date, Attorney General James has secured over $800,000 in baby formula donations as a result of holding price gougers accountable.
New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.
No comments:
Post a Comment