The Federal Trade Commission is launching an investigation into reports of baby food companies involved in fraudulent practices and price gouging, and whether the GOVERNMENT contributed to the supply chain chaos that has led to a widespread shortage
- The panel is asking for public comment on whether state or federal agencies have contributed to the fragile baby food supply chain
- FTC Chair Lina Khan said in a statement Tuesday the shortage is causing “tremendous concern, anxiety and financial strain on American families.”
- Last week, around 45 percent of formula products were sold out nationwide
- The Biden administration has been criticized for not acting quickly enough to avert the crisis, which has been linked to several recent hospitalizations for babies
- President Biden signed a series of emergency measures for the shortage
The Federal Trade Commission Tuesday launched an investigation into the ongoing baby food shortages plaguing American families across the country.
The panel will examine whether recipe suppliers engaged in “deceptive, fraudulent or otherwise unfair business practices” to “exploit” Americans and what elements contributed to the fragility of the product’s supply chain and the concentration of most of the market in a few firms.
It also encourages Americans to speak up about whether they believe policies created by the federal and state governments contributed to the crisis, as the Biden administration is working desperately to ease the strain after being criticized, not sooner to have acted.
“We have observed and will continue to monitor the continuing shortages of infant formula, which are causing tremendous concern, anxiety and financial strain for American families,” FTC Chairwoman Lina Khan said in a statement.
“The FTC is launching a public inquiry to determine the factors that contributed to the shortage or hampered our ability to respond. Learning from this experience can help determine how we can mitigate the risk of similar shortages in other life support markets.’
The commission “is seeking public comment on whether the FTC itself, or state or federal agencies, may have inadvertently taken steps that have contributed to fragile supply chains in the marketplace for these critical products for many American families,” a White House statement said sent announcement.
A sign on an empty shelf informs customers that there is no back stock of infant formula at a supermarket in New York City on May 23, 2022
The shortage has hit families with babies with feeding problems the hardest
The FTC cracks down on unfair practices by baby formula manufacturers and is investigating whether government regulations contributed to the shortage
They also want to hear about “cases where families have experienced fraud, deception or fraud when attempting to purchase infant formula or have been forced to purchase formula from online retailers at exorbitant prices.”
On the supply side, officials wonder “whether small and independent retailers have had particular difficulties accessing limited supplies of infant formula compared to large retailers.”
Just four manufacturers are responsible for producing more than 90 percent of the country’s baby food supply.
About 45 percent of formula products nationwide were sold out last week, according to CBS. The parents who are most affected are those whose children have nutritional or other issues that limit the types of infant formula they can eat.
President Biden has taken several measures to alleviate the ever-worsening baby food shortages, including Operation Fly Formula, which aims to increase international imports of baby food to increase U.S. supply.
However, his government has been criticized for failing to act sooner amid the deepening crisis.
President Joe Biden has taken several emergency measures to ease the crisis after he was accused of not acting quickly enough
This includes Operation Fly Formula, which enables commercial military aircraft to fly thousands of pounds of baby formula from Europe to the United States
However, Biden officials have pointed out that parents began to struggle when formula maker Abbott Nutrition was forced to close its Michigan plant due to bacterial contamination.
Abbott announced last week that it had reached an agreement with the Food and Drug Administration to address safety issues at the facility, which has been closed for more than three months.
Among the measures Biden had given the green light amid mounting pressure to respond to the formula shortage was allowing commercial military aircraft to carry supplies from overseas – provided it met U.S. health standards.
Over the weekend, about 78,000 pounds of baby food were flown from Ramstein Air Base in Germany to Indianapolis, Indiana, on the program’s first broadcast.
The president also invoked the Defense Production Act, which requires suppliers to prioritize the provision of resources for the manufacture of infant formula over all other contracts.
Last week, the House of Representatives narrowly passed legislation aimed at alleviating the dairy shortage, despite opposition from 192 Republicans.
GOP lawmakers have argued that giving the Food and Drug Administration more money, which the legislation is doing, is not a viable solution.
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