12/18/2024 | Press release | Distributed by Public on 12/18/2024 10:19
NEW YORK - New York Attorney General Letitia James today delivered 3,300 cans of baby formula, worth $140,000, for Rochester families from the Office of the Attorney General's (OAG) settlement with Marine Park Distribution Inc. (Marine Park) and its affiliate Formula Depot Inc. (Formula Depot) for illegal price gouging during the nationwide shortage in 2022. An investigation by OAG found that Marine Park and Formula Depot raised prices of baby formula during the shortage in violation of New York's price gouging laws. At times, Marine Park doubled the price of a can of baby formula, charging its customers up to $36 for a can that cost $18 before the shortage. Attorney General James secured a settlement with Marine Park and Formula Depot that will deliver $675,000 worth of baby formula to New Yorkers by November 2025. The baby formula distributed today will go to Foodlink, a Rochester nonprofit, and its partner organizations.
"During a nationwide shortage of baby formula, families in Rochester, like so many across the state, scrambled to find enough formula for their babies," said Attorney General James. "Taking advantage of an emergency to squeeze profit from desperate families is shameful and illegal. Thanks to my office's investigation, we're delivering 3,300 cans of baby formula to Rochester families. I thank Foodlink and all of its partner organizations who will help distribute this baby formula and support families in need. My office will continue to go after any business that tries to exploit a crisis and cheat New Yorkers."
Baby formula is a critical food source for the vast majority of infants across the country. Three out of four infants in the U.S. consume baby formula during the first six months of their lives. The 2022 shortage caused by a manufacturing plant closure and recall created significant hardship for families across New York as supplies dwindled and prices rose. 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. An OAG investigation found that 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.
Attorney General James secured a settlement with Marine Park and Formula Depot to resolve the investigation that will deliver $675,000 worth of baby formula to New Yorkers over the course of the next year. The first delivery of 3,300 cans of baby formula worth $140,000 is being made to Foodlink, a Rochester-based foodbank and nonprofit. Foodlink will work with numerous local partner organizations, including Healthy Baby Network and Mothers in Need of Others to distribute the baby formula. The remaining baby formula will be delivered to nonprofits throughout the state by the end of November 2025.
New Yorkers in the Rochester region face higher rates of child poverty and food insecurity than those in other parts of the state. Four in ten children in Rochester are living in poverty, a rate nearly double the statewide average. Visits to food pantries and meal programs in the area increased 34 percent from 2023 to 2024, with Black and Hispanic New Yorkers in the Rochester region more than three times as likely to be food insecure than white residents.
"One of our fundamental responsibilities as adults is to protect the health and safety of our children, and that starts with ensuring they are well fed-which is why reliable access to baby formula is so critical," said Congressman Joe Morelle. "Between product shortages and corporate price-gouging, the struggle to find affordable formula is ubiquitous for parents everywhere. I'm grateful to Attorney General James for taking this action to hold bad actors accountable and give families the peace of mind they deserve, especially during the holiday season."
"Baby formula is not an optional purchase for families with an infant, and taking advantage of a national shortage to force parents to overpay is unconscionable," said Rochester Mayor Malik D. Evans. "We already know of mothers and fathers living on a tight budget who, faced with an unexpected increase in the cost of baby formula, would go hungry to ensure there's enough for their child. I'm grateful to Attorney General Letitia James for pursuing this case and sharing the resulting settlement with Rochester families through Foodlink. At this time of year especially, no one should go hungry, least of all a baby."
"Baby formula is a critical resource that should be readily available to all community members," said Senator Samra G. Brouk. "No one should have to worry about securing food for their child, that is why I center my legislative and community work around maternal health all year round and host events such as my annual community baby shower. I am grateful to Attorney General James for investigating the root causes of the baby formula shortage to correct injustices against our working families. Thank you for supporting our community."
"When baby formula became scarce and prices were made unaffordable for New Yorkers, Attorney General James took the lead to hold companies accountable," said Senator Jeremy Cooney. "Thanks to her efforts, free formula is now on its way to members of our community who need it most. I want to thank the Attorney General for once again protecting consumers and delivering for the residents of Monroe County."
"Illegal price gouging is a scourge that hits hardest those who can least afford it," said Assemblymember Jen Lunsford. "And when those deplorable practices force families to make tough decisions between household necessities and feeding their babies, it is downright immoral. I am grateful for Attorney General James for doggedly pursuing these bad corporate actors and holding them accountable for their opportunistic money grab. Rochester children, who are already amongst the neediest in the nation, deserve a champion, and they have found one in Attorney General James and her team."
"Price gouging during a shortage crisis is simply unacceptable especially when it is our children who suffer the consequences," said Assemblymember Demond Meeks. "This settlement ensures that we hold companies accountable for their actions and provides families in need with essential baby formula. Thank you to Attorney General Letitia James for always standing up for our children and families."
"Thank you, Attorney General James, for, once again, seeking justice for New York families impacted by predatory practices and price gouging," said Assemblymember Harry Bronson. "The settlement reached with Marine Park Distribution Inc. and Formula Depot Inc. will help make whole local families affected by the illegal price hikes on baby formula, and through the collaboration with Foodlink and Healthy Baby Network, increase affordability and access for families currently in need."
"As a mother, I know just how amazing and difficult those first few months can be. One thing no parent should ever face is the inability to feed their child," said Monroe County Clerk Jamie Romeo. "I want to thank Attorney General Letitia James for her constant focus on supporting families across New York State. Now more than ever, we need leaders like Letitia James to stand up against corporate greed, who look to profit off basic necessities such as baby formula. New York state must continue to send out the signals across this nation that vulnerable populations are not profit-building tools; but our friends, family, and loved ones."
"We're grateful to Attorney General Letitia James for this donation of formula," said Julia Tedesco, President & CEO of Foodlink. "This timely donation aligns perfectly with the launch of our Health and Wellness Program. Our network of food pantry partners has identified a growing need for baby products and other hygiene and non-food items, and this donation will be invaluable to our members and their clients who are in need of formula."
"On behalf of Mothers In Need of Others and Foodlink's soon-to-be Health and Wellness program, I would like to thank Attorney General Letitia James for choosing us to be one of the recipient agencies for the generous donation of formula," said Maria Wehrle, Mothers In Need of Others Program Coordinator. "We are grateful for the Attorney General's generosity!"
Attorney General James has been a leader in the fight to protect New York consumers and guard against price gouging. In October 2024, Attorney General James led a multistate coalition urging Congressional leaders to support a national ban on price gouging. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City from a settlement with Walgreens for price gouging during the formula shortage. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In March 2023, Attorney General James announced price gouging rules to protect consumers and small businesses from corporate profiteering. The rules would strengthen enforcement of New York's price gouging law. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation's largest egg producers for price gouging in the early months of the pandemic.
New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.
This matter was handled by Assistant Attorney General Benjamin C. Fishman, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Consumer Frauds and Protection Bureau. Former Data Scientist Jasmine McAllister also assisted in this matter, under the supervision of Director of Research and Analytics Victoria Khan, Deputy Director Gautam Sisodia, and former Director Megan Thorsfeldt. The Consumer Frauds and Protection Bureau is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D'Angelo and is overseen by First Deputy Attorney General Jennifer Levy.