The Food Bank of Central New York will be able to distribute 7,000 containers of baby formula to needy families, courtesy of a price gouging settlement by the Attorney General’s office.
During a news conference Monday held at the Food Bank of Central New York in Syracuse, Attorney General Letitia James said two companies, Marine Park and Formula Depot, raised prices 60% more than was allowed under the law during a baby formula shortage in 2022.
"We received a number of complaints with respect to price gouging," James said. "And so we opened up a portal, a 1-800 number, and we received a number of complaints all throughout the state of New York. And as a result of our investigation and ultimately our settlement, we were prepared to go to court. But they decided again to work out a settlement with us to the tune of $675,000.
$100,000 of that settlement will go to the Food Bank of CNY. CEO Karen Belcher said it will be distributed to families at a time of great need.
"I think what happened with SNAP and the uncertainty with WIC, we saw how fragile everyone's budgets are, how quick they were turning to the emergency network to support their day-to-day needs for their families," said Belcher. "And formula was one of those things that we were hearing."
Belcher expects the formula to be distributed quickly, in as little as three weeks, to needy families in the Food Bank of CNY's 11 county service area, which stretches from the Southern Tier to the North Country.
James said her office has been looking into other price gouging instances. She wants this baby formula case to be a warning for anyone who wants to take advantage of shortages to gouge customers.
"Not only to Marine Park, but to other individuals, that you cannot take advantage of marginal and vulnerable families, particularly in a state of crisis," James said. "It's really critically important that you recognize that individuals who suffer from food insecurity, individuals living under the weight of poverty, need support. They need assistance.They don't need individuals and corporations who are thinking more about profits as opposed to people."
