NEW YORK: A state of emergency has been declared in New York City (NYC) amid the ongoing nationwide baby formula shortage, potentially allowing officials to combat profiteering on the scarce products, reports RT.com
The move, which was announced by Mayor Eric Adams on Sunday, gives the city's Department of Consumer and Worker Protection the power to prevent price gouging by cracking down on retailers.
A press release by city officials also states that parents in New York City who feel they are being overcharged for infant formula can now file a complaint on the NYC official government website.
The US has been faced with a nationwide shortage of baby formula since February, after already existing supply chain issues stemming from the Covid-19 pandemic were exacerbated by a major product recall by one of the country’s main formula manufacturers, Abbott Laboratories, who were also forced to shut down their largest production facility in the country after the Food and Drug Administration (FDA) reportedly found evidence of bacterial contamination at the plant which allegedly contributed to four infants falling ill, two of which died.
Abbott has denied the allegations, and insists that no bacterial contamination has been found in its end products.
The manufacturer has been working with the FDA to relaunch its production facility as soon as possible, but has noted that it could still be months before stock from the plant will reach store shelves.
Meanwhile, the Biden administration has been attempting to ease the ongoing shortage, by invoking the Defense Production Act, which gives the US president the authority to force manufacturers to prioritize contracts deemed necessary for national defense, regardless of a loss incurred on business and allows the administration to designate materials prohibited from hoarding and price gouging.
