Over 30 NY Retailers Warned To Stop Overcharging For Baby Formula: AG

NEW YORK — Specific New York retailers believed to be price gouging for baby formula during a nationwide shortage have been singled out by the state's attorney general.

On Friday, New York Attorney General Letitia James sent cease-and-desist letters to more than 30 online and brick-and-mortar retailers across New York State, ordering them to immediately stop overcharging for baby formula and warning them of the legal consequences of price gouging. The action was in response to complaints to her office from consumers about unreasonably high baby formula prices they encountered.

"It's unconscionable that some retailers are taking advantage of the national baby formula shortage while parents are struggling to find food for their children," James said. "Amid this crisis, families already have enough to worry about and should not have to worry about being price gouged. We are warning all retailers that New York will not tolerate price gouging of baby formula, and I encourage anyone who sees this to continue reporting it to my office."

New York law prohibits retailers from taking advantage of customers by selling goods or services that that are vital to health, safety or welfare at an "unconscionably excessive price."

Earlier this month, James issued a strong warning against those "who would take advantage of a crisis to make a quick profit" after receiving reports of retailers price gouging on baby formula in the midst of a nationwide shortage due to recalls and supply chain issues. She said her office became aware of reports of formula being sold online at exorbitant prices. At the time, James urged New Yorkers to be on the lookout for potential price gouging of formula and to report any drastic price increases to her office.

SEE ALSO:

• Baby Formula Price Gougers 'On Notice': New York AG Letitia James
• Baby Formula Shortage: 5 Things New York Parents Need To Know
• Moms Speak On Desperate Baby Formula Search: 'It Is Terrifying'

Since then, the Attorney General's Office has received a number of complaints of baby formula price gouging across the state. One consumer reported that a 19.8-ounce can of Enfamil Nutramigen formula, which is typically sold for $44.99, was being sold by an Erie County retailer for $59.99. Another consumer reported that a 32-ounce ready-to-feed bottle of Enfamil NeuroPro, which is typically sold for $11.99, was sold by a Bronx retailer for $17.99.

The attorney general said that she made clear in her cease-and-desist letters that wholesalers and distributors are also prohibited from price gouging and encourages retailers to notify her office if they are being overcharged. She stressed that New York's price gouging laws are expansive and prohibit price gouging of consumers as well as of small businesses and state/local governments.

"The national baby formula shortage is terrifying for parents concerned about how to feed their children," James said in a statement on May 11. "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."

James again cautioned parents who have trouble finding formula to first speak with their child's doctor before attempting to dilute formula or make their own at home, both of which can be dangerous to an infant. Due to the country-wide shortage, the AG's office continues to recommend that consumers only buy as much formula as they actually need and to not unnecessarily stock up since panic-buying might worsen the shortage and lead to sellers illegally price gouging. Consumers are also reminded that merchants are allowed to limit the amount of formula that they sell to individual customers.

When reporting potential price gouging to the AG's office, consumers should report the specific increased prices, dates, places and type of formula being sold. Copies of sales receipts and/or photos of the advertised prices should also be provided, if possible.

New Yorkers can report their potential price gouging concerns here or by calling 1-800-771-7755.