New York Attorney General Letitia James has announced a settlement involving $675,000 worth of baby formula to be distributed to New Yorkers in need. The settlement follows an investigation into Marine Park Distribution Inc. and its affiliate Formula Depot Inc., which were found to have engaged in illegal price gouging during the 2022 nationwide baby formula shortage.
The Office of the Attorney General (OAG) discovered that these companies significantly increased prices during the shortage, with some instances showing prices doubled from pre-shortage levels. As part of the settlement, Marine Park and Formula Depot are required to provide baby formula donations throughout the coming year, starting with Foodlink and its partner organizations in Rochester.
In addition to supplying formula, both companies have paid a $75,000 penalty. "Parents should never have to worry about unfair price spikes putting their children’s next meal at risk," said Attorney General James. She emphasized her commitment to pursuing companies that exploit consumers during crises.
The baby formula shortage began after Abbott Laboratories closed a manufacturing plant due to contamination concerns in February 2022, leading to a recall of several Similac products. This caused significant disruptions for families across New York who struggled with finding available formula and faced inflated prices.
Marine Park and Formula Depot raised their prices beyond legal limits during this period, prompting the OAG's action against them. The settlement stipulates that they must deliver $675,000 worth of baby formula by November 2025 and prohibits future price gouging activities.
Attorney General James has been actively working against price gouging practices, having previously secured settlements with other companies like Walgreens and Quality King Distributors for similar offenses during different periods of crisis.
New Yorkers can report potential price gouging incidents by contacting the OAG through an online complaint form or by calling 800-771-7755.
This case was managed by Assistant Attorney General Benjamin C. Fishman under Bureau Chief Jane M. Azia's supervision within the Consumer Frauds and Protection Bureau. Additional assistance came from former Data Scientist Jasmine McAllister under Director Victoria Khan's oversight in Research and Analytics.