New York Attorney General Letitia James sent warning letters to more than thirty retailers telling them to stop overcharging customers for baby formula.  In the letters, she made clear that retailers and their suppliers are prohibited from engaging in price gouging and encouraged retailers to notify the NYAG if they are being overcharged by their suppliers. 

New York law prohibits prohibits retailers and others in the supply chain from selling "goods and services vital and necessary for the health, safety and welfare of consumers or the general public" for an "unconscionably excessive price" during any "abnormal disruption in the market."  

In a statement, James said, “It’s unconscionable that some retailers are taking advantage of the national baby formula shortage while parents are struggling to find food for their children.  Amid this crisis, families already have enough to worry about and should not have to worry about being price gouged. We are warning all retailers that New York will not tolerate price gouging of baby formula, and I encourage anyone who sees this to continue reporting it to my office.”

Last week, New York City issued a warning about price gouging as well, and the Federal Trade Commission announced that it had launched an inquiry too.