Attorney General Letitia James: Baby formula companies agree to donate $675,000 of product for price gouging

Baby formula companies that price-gouged during the 2022 national shortage have agreed to donate $675,000 of product and pay a $75,000 fine, according to the office of state Attorney General Letitia James.

An investigation by the office found that supplier Marine Park Distribution Inc. and its affiliate Formula Depot Inc. broke New York law by hiking prices during the shortage — at times to $36 a can from $18, the office wrote in a press release.

The donations and the fine settle allegations by the office. The donated formula will go first to an organization in Rochester that helps the needy, with forthcoming donations of the product to be distributed over the coming year elsewhere in the state.

The companies were found to have raised prices over 60, more than allowed by law, "generating hundreds of thousands of dollars more in revenue," the office said in a press release. The companies are also barred from future price-gouging.

The companies couldn’t be immediately reached for comment.

Earlier this year, Walgreens agreed to similar donations after James’ office accused the retailer of price-gouging formula during the shortage, which was caused by a global supply-chain crisis

By Matthew Chayes

matthew.chayes@newsday.comchayesmatthew

Matthew Chayes, a Newsday reporter since 2007, covers New York City.