New Yorkers in need will receive baby formula after New York Attorney General Letitia James secured a $675,000 settlement with Marine Park Distribution Inc. and its affiliate, Formula Depot Inc., for illegal price gouging of baby formula during the nationwide shortage in 2022.
The companies will also pay a $75,000 penalty and are barred from future price gouging, according to a press release.
The settlement follows an internal investigation that uncovered that Marine Park and Formula Depot doubled the price of baby formula, charging up to $36 for a can that previously cost $18. James said parents struggled to provide meals for their children as a result.
“In 2022, when there was a baby formula crisis and families across New York and the country were struggling to find and afford food for their infants, profiteering companies took advantage. As a result of our investigation, my office will be delivering thousands of cans of baby formula to support New Yorkers in need. I will continue to go after companies that price gouge essential goods and take advantage of hardworking families, especially during a crisis," said AG James.
AG James issued warnings to over 30 retailers to curb overcharging during the 2022 baby formula shortage sparked by the February closure of Abbott Laboratories’ manufacturing plant and a recall of popular Similac products. The disruption in the supply chain left families across the U.S. scrambling for formula, with many parents in New York paying high prices for limited stock.
Marine Park and Formula Depot were found to have increased formula prices by over 60% in some cases, violating New York’s price gouging laws. One customer, dependent on specialized formula for babies with allergies, reported a price jump from $190 to $245 for the same case within weeks.
The first donation of baby formula under the settlement will go to Foodlink, a Rochester-based nonprofit, and its partner organizations. Additional distributions will occur through November 2025, ensuring formula reaches families across the state.
New Yorkers are encouraged to report suspected price gouging to the OAG by filing a complaint online or calling 800-771-7755.
