FTC, BBB Warn Baby Formula Shortage Scams on the Rise

The Federal Trade Commission (FTC) and the Better Business Bureau (BBB) have issued an urgent warning to desperate parents or caregivers about the rise of baby formula shortage scams, especially on the internet.

In a statement issued on the FTC official site, the agency detailed some fraudulent activities that scammers are doing to exploit moms and dads with young children. The agency said that scammers had tricked parents into paying for the baby formula that never actually arrives.

Some of these scammers are on eBay or have created fake websites and fake social media profiles with product shots to entice parents. They also use payment platforms like Venmo, Paypal, or some cash-app system so that their scams look legitimate, only to disappear once the money has been transferred to their accounts.

Victims Are Speaking Up

Mom Jessie Esparza-Wohlgemuth told ABC News that she's at her wit's end looking for baby formula supplies for her 6-month-old baby. In late April, she found a deal online that excited her because the offer entailed two dozen cans of her baby's milk.

Esparza-Wohlgemuth figured she could buy the offer and have enough to redistribute to other parents in her community. She closed the deal with the online seller after seeing photos of the products.

After she paid $300 for the milk supplies, Esparza-Wohlgemuth could no longer get in touch with the seller. The mom said it was heartbreaking to realize that she got scammed.

Abby Kasten, another mom with a 6-month-old baby, said that she has yet to encounter a seller taking advantage of her or other moms, considering many online parenting groups trade these baby formulas. But her group has been aware that the scams are on the rise. Many parents are in disbelief over how some people can still take advantage of others in difficult situations.

Sarah Wetzel of BBB said some scammers are brazen and will reach out to parents in private chats. She advised moms and dads to be aware of the red flags. Scammers will usually tell parents they have to buy the baby formula "now" because it will sell out in a matter of hours.

Avoiding the Baby Formula Shortage Scams

The FTC and BBB advise parents to be more cautious about closing deals with online sellers or clicking the "buy" button at eCommerce sites. It will help if they search about the store or seller first by typing in the store's name with the words "complaint," "review," or "scam," and see what comes up on the internet.

Parents may also look at the ScamAdviser for more information about the eCommerce store. If the transaction is through social media or private messages, look for other parents who have had successful transactions with the seller and get their feedback first.

The agencies also advised paying for credit cards as this can be disputed and reversed if the products are not delivered.