Foodlink, One of Several Organizations to Distribute Baby Formula From AG’s Settlement with Marine Park Distribution
New York Attorney General Letitia James announce $675,000 worth of baby formula for families in need as part of a settlement with formula supplier Marine Park Distribution Inc. (Marine Park) and its affiliate Formula Depot Inc. The settlement resolves allegations of illegal price gouging during the nationwide baby formula shortage in 2022.
The Office of the Attorney General (OAG) found that Marine Park and Formula Depot significantly increased prices on formula during the shortage, in some cases doubling costs. For example, the companies charged as much as $36 for a can of formula that previously cost $18. Under the agreement, Marine Park and Formula Depot will donate baby formula over the next year to food distribution organizations across New York. The first delivery will go to Foodlink and its partner organizations in Rochester. Additionally, the companies paid a $75,000 penalty and are prohibited from future price gouging.
“Parents should never have to worry about unfair price spikes putting their children’s next meal at risk,” said James. “In 2022, during the formula crisis, families across New York struggled to find and afford baby formula while profiteering companies took advantage. As a result of our investigation, thousands of cans of formula will now support families in need.”
The baby formula shortage began in February 2022, when Abbott Laboratories, a major manufacturer responsible for over 40% of the U.S. formula supply, shut down its Michigan plant due to contamination concerns and issued a recall on popular Similac products. The shutdown created a nationwide crisis, leaving families struggling to find formula and forcing many to pay exorbitant prices.
New York’s price gouging laws prohibit businesses from “unconscionably” raising prices on essential goods during emergencies or market disruptions. In May 2022, James warned over 30 retailers statewide to stop overcharging consumers for formula. The OAG’s investigation revealed Marine Park and Formula Depot’s repeated violations of this law, with price increases of over 60% in some cases. One consumer reported paying $245 for a case of specialty formula — a steep jump from $190 just weeks earlier.
Under the settlement terms:
Marine Park and Formula Depot will donate $675,000 worth of baby formula to food organizations serving New Yorkers by November 2025.
The first donation will go to Foodlink in Rochester, with additional deliveries planned throughout the year.
Both companies paid a $75,000 penalty to the state and are barred from engaging in future price gouging.
James has been a vocal advocate for protecting against price gouging. She previously secured settlements involving Walgreens, Quality King Distributors, and major egg producers for similar violations during supply chain crises, including the COVID-19 pandemic.
In addition, James recently proposed rules to strengthen enforcement of New York’s price gouging laws. Her office continues to urge federal action to implement nationwide protections against exploitative pricing practices.
New Yorkers who suspect price gouging are encouraged to file complaints with the Attorney General’s office by visiting ag.ny.gov or calling 800-771-7755.
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