Formula Milk Price Skyrockets Despite Price Control Measures

Formula Milk Price Skyrockets Despite Price Control Measures
Formula milk prices skyrocketed online despite the measure to control price gouging. Tech companies say they could not do anything about it. Getty images

Parents complain that the shortage of formula milk has caused its prices to skyrocket, despite the government's measures to prevent price-gouging. State attorney general officers reported receiving complaints about people taking advantage of a nationwide formula shortage to charge inflated prices.

President Joe Biden ordered the Federal Trade Commission (FTC) and state attorneys general to investigate unfair market practices of formula milk, including price gouging, 13WMaz reports.

Difficulty getting specialized formula milk

Renee Steiber shared that her 11-year-old son Owen received formula milk regularly in Chicago. Her son has a feeding tube and needs a specialized formula, Neocate, Jr., for his severe allergy to various foods.

When the shortage happened, Steiber's usual distributor said it did not have any of the Nutricia products in stock. They were at a loss where to find the formula. Her son only had five days of formula left.

They could not find any formula anywhere. They found some online, but the prices were way up, Steiber said. Although the formula is covered by insurance, they had to shell out almost $1,000.

As per CNN, Shemaka Henderson also experienced the same thing. Her five-year-old son, Omarea Terry II, has dozens of food allergies and needs a special hypoallergenic formula. When the milk shortage happened, they only had a few days of milk supply left. Their dentist put out a call for help on social media, and a few people donated cans. However, Omarea needs a can of milk a day.

Since February, the family has been on the formula milk hunt when their suppliers said they did not have enough stocks.

Omarea uses Elecare Jr., from Abbott. They experienced a shortage after U.S.Food and Drug Administration found Abbott's Michigan plant "unsanitary." Although the plant re-started its production last weekend and promised to prioritize Elecare and other specialty milk in its production, the products would not be available until around June 20.

Their pediatrician switched to Enfamil's Puramino Jr., and they also had difficulty finding that particular formula.

Henderson said she found some milk online and was willing to pay extra, but the prices were outrageous.

She shared that a woman offered her $40 a can. The sale would not be covered by insurance. She met with the woman, only to be told that the price had gone up to $100 a can.

She told the woman that she could not buy the can. Later, she admitted that she had no choice. She feeds her child with the expensive milk or takes the child to the hospital.

Monitoring price gouging

The outrageous milk prices online caught the attention of the state attorney general and elected officials recently. Connecticut Democrats Rep. Rosa DeLauro and Sen. Richard Blumenthal sent a letter to FTC Chair Lina Khan. They warned that they were aware of price gouging and scams targeting parents on sites like eBay and Facebook Marketplace, NBC News reports.

However, parents with newborns and babies with severe allergies do not have time to file complaints with government agencies. Tech companies are complaining it is difficult to monitor formula milk sales and their prices online.

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