The FTC says it will 'fully enforce the law' against baby formula sellers who are price gouging parents
- The FTC is investigating possible fraud and price gouging amid the national shortage of baby formula.
- Sellers on Ebay, Amazon and Craigslist, and Facebook are charging double or more than retail price.
The US Federal Trade Commission said Tuesday it is investigating the possibility of fraud and price gouging as families struggle to buy baby formula in a national shortage.
FTC Chair Lina Khan said in a statement that the agency would "fully enforce the law against anyone who deceives, exploits, or scams" families attempting to buy formula supplies. In addition, Khan said the inquiry will help the agency understand how to avoid similar market failures in the future.
The announcement comes a day after NBC News reported parents were seeing markups of 300% and up on websites like Ebay, Amazon, Craigslist, and Facebook. The outlet reported that it spoke with 13 parents across the US and reviewed over 100 listings that appeared to gouge prices.
"Get over it," one seller told a parent in messages seen by NBC News. "it is not illegal u may dislike but u have NO right to interfere in my business. people do it constantly."
Last week, Insider found several examples on Ebay where sellers were charging roughly double the suggested retail price for formula products. Others listings appeared to charge a smaller markup, but added shipping fees that cost double or triple the price of the item.
Ebay has a reporting tool for shoppers to report price gouging, a spokesperson told NBC. The FTC has a portal as well, at ReportFraud.ftc.gov.
In her statement, Khan also said the FTC will also be on the lookout for the role of bots or other automated systems that buy large amounts of formula from ordinary retailers and mark it up for sale to families.
"Over the last few years, Americans have repeatedly experienced cycles of supply chain disruptions, shortages, stockpiling of remaining supplies, and reseller profiteering and price gouging," Khan said. "The FTC will do everything within its power to ensure the markets for other life-sustaining and vital products are competitive and resilient."