Over 9,500 cans of baby formula delivered to NY as part of price gouging settlement

Over 9,500 cans of baby formula were delivered to families after an investigation into illegal price gouging by Walgreens.

New York Attorney General Letitia James said in a news release Tuesday the investigation started after consumers complained about "unreasonably high prices" of formula at the pharmacy during a nationwide shortage in 2022.

In February 2022, Abbott Laboratories, a major formula manufacturer, shut down a plant that was facing contamination concerns and recalled some of its Similac products, according to James. The plant that closed, however, was responsible for producing 20% of the nation's formula products.

Coupled with supply-chain issues thanks to the ongoing COVID-19 pandemic, shelves holding baby formula in pharmacies and supermarkets were barren for months.

While the federal government enacted the Defense Production Act and passed several laws along with state governments to help provide families with the essential product, James said she issued warnings to over 30 retailers to stop overcharging for baby formula.

James said an investigation from the Office of the Attorney General found that Walgreens illegally increased the prices on at least 20 baby formula products by over 10%. Other products were raised to 20% or even 70%, according to James. As a result, Walgreens made over 2,400 sales, which amounted to over $150,000 in revenue.

“Baby formula is the main source of nutrients and absolutely essential for thousands of our most vulnerable residents, our infants. During the formula shortage, families were panicked and struggling about how to feed their babies. For Walgreens to take advantage of this crisis and jack up formula prices is not only illegal, but downright shameful,” said James. “The thousands of baby formula cans secured by my office will go directly to help New York families who need it most."

James said the settlement was resolved with the product to make it available to New York families in need, but Walgreens is still required to pay a $50,000 penalty for the findings of the investigation and will be prohibited from future price gouging.

As part of the settlement, Walgreens is required to also donate 9,564 cans of baby formula to the Met Council in Queens, and FeedMore WNY and the Buffalo Prenatal Perinatal Network in Buffalo.

James said New Yorkers who believe they are victims of price gouging should report potential concerns to the OAG by filing a complaint online or calling 800-771-7755.

This article originally appeared on Rockland/Westchester Journal News: Baby formula price gouging settlement: 9,500 cans head to NY