The Federal Trade Commission is launching an investigation into reports that baby formula companies were involved in deceptive practices and rising prices and whether the GOVERNMENT contributed to the chaos in the supply chain that caused widespread shortages.
- The agency is asking for public input on whether state or federal agencies have contributed to the fragile baby formula supply chain.
- FTC President Lina Khan said the shortage was “causing enormous anxiety, fear and financial burden for American families” in a statement on Tuesday.
- Last week, about 45 percent of formula products nationwide were sold out
- The Biden administration has been criticized for failing to act quickly enough to avert the crisis, which has been linked to multiple recent hospitalizations of infants.
- President Biden signed a series of emergency measures for scarcity
By Elizabeth Elkind, political reporter for Dailymail.Com
Posted: 22:01, 24 May 2022 | Updated: 10:35 PM, May 24, 2022
The Federal Trade Commission on Tuesday launched an investigation into the shortage of infant formula that is plaguing American families across the country.
The agency will examine whether formula suppliers engaged in “deceptive, fraudulent or unfair business practices” to “take advantage” of Americans, as well as what elements contributed to the fragility of the product supply chain and the concentration of the majority of the market. in a few companies.
It also encourages Americans to talk about whether they believe any policy created by the federal and state governments contributed to the crisis, as the Biden administration is working desperately to ease tension after being criticized for not acting sooner.
“We have been and will continue to monitor the shortage of infant formulas that is causing enormous anxiety, fear and financial burden for American families,” FTC President Lina Khan said in a statement.
“The FTC is launching a public investigation to identify the factors that contributed to the shortage or hindered our ability to respond. Learning from this experience can help determine how we can minimize the risk of similar shortages. markets for other life support products “.
The commission “asks for public input on whether the FTC itself or state or federal agencies may have inadvertently taken action that has contributed to fragile supply chains in the market for these crucial products for many American families,” he said. an ad sent by the White House.
A sign on an empty shelf informs customers that there is no stock in the back of the infant formula in a supermarket on May 23, 2022 in New York City
Scarcity has affected families with babies with dietary problems the most
The FTC is cracking down on unfair practices by baby formula makers and whether government regulations have contributed to the shortage
They are also looking to hear about “instances in which families have suffered fraud, deception or scams when trying to buy infant formula or have been forced to buy formula from online distributors at exorbitant prices.”
On the supply side, officials question “whether small, independent retailers have faced particular difficulties in accessing limited infant formula supplies compared to large retail chains.”
Only four manufacturers are responsible for producing more than 90 percent of the country’s baby formula supply.
According to CBS, about 45 percent of formula products nationwide were sold out last week. The most affected parents are those whose children have dietary problems or others who limit the types of formula they can eat.
President Biden has taken a number of steps to alleviate the growing shortage of infant formula, including Operation Fly Formula, which aims to increase international imports of infant formula to increase supply to the United States. .
But his administration has been criticized for failing to act earlier amid the worsening crisis.
President Joe Biden has taken several emergency measures to try to alleviate the crisis after being accused of not acting fast enough.
This includes Operation Fly Formula, which allows commercial military aircraft to fly thousands of pounds of infant formula from Europe to the US.
However, Biden officials have noted that parents began fighting 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 security issues at the facility, which has been closed for more than three months.
Among the measures Biden announced amid growing pressure to act in the face of a shortage of formulas was to authorize commercial military aircraft to transport supplies from abroad, as long as they comply with U.S. health standards.
Over the weekend, approximately £ 78,000 of infant formula was shipped to Indianapolis, Indiana, from Ramstein Air Force Base in Germany on the first shipment of the program.
The president also invoked the Defense Production Act that obliges suppliers to prioritize the direction of resources over the production of infant formulas over all other contracts.
Last week, the House of Representatives narrowly passed a bill aimed at alleviating the shortage of formulas, despite opposition from 192 Republicans.
GOP lawmakers have argued that giving more money to the Food and Drug Administration, which the legislation does, is not a viable solution.