FTC Announces Inquiry Into The Infant Formula Shortage

On May 24, 2022, the FTC announced a widespread inquiry into the ongoing infant formula shortage. The agency had been tasked by the White House with investigating any price gouging or unfair market practices in the industry. The agency is seeking public comments on "various factors that may have contributed to the infant formula shortage.as well as its impact on families and retailers."

In its press release, the agency identified issues of particular concern, including:

• Fraud, deception, or scams consumers may have experienced when trying to buy infant formula,
• Retailers' experiences since the formula recall began in February,
• How mergers and acquisitions, and FDA regulations, have affected the number of suppliers of infant formula, capital investment in the market, and the overall manufacturing capacity of suppliers, and