NYC Mayor Eric Adams Declares State Of Emergency To Prevent Price Gouging Amid Formula Shortage

New York City mayor Eric Adams issued a state of emergency on Sunday to keep the price of baby formula down amid a shortage. 

“The nationwide infant formula shortage has caused unimaginable pain and anxiety for families across New York — and we must act with urgency,” the mayor said in a news release. “This emergency executive order will help us to crack down on any retailer looking to capitalize on this crisis by jacking up prices on this essential good.”

Emergency Executive Order 98 cited section 5-42 of Title 6 of the Rules of the City of New York, which serves to protect certain products from drastically rising prices. According to the code, an excessive price hike is defined as 10 percent or more above the average retail price. 

“As the national baby formula shortage is playing out locally, we are using the tools available to us to protect consumers and working families,” Deputy Mayor for Economic and Workforce Development Maria Torres-Springer said in the press release. “The actions we are taking with this emergency declaration and executive order sends a clear message to any unscrupulous actors that may try to take advantage of this situation: not in New York City.”

Nationwide, more than 40 percent of retailers are out of stock of formula. That number is slightly higher than the national average in the tri-state area, with 43 percent of retailers out of stock.

The formula shortage was caused by a recall of name-brand formula by Abbott Nutrition. It affected all formulas produced in Michigan. The suppliers’ plant was subsequently closed down. 

President Joe Biden invoked the Defense Production Act, so US-based baby formula manufacturers could access the materials necessary to produce the formula. On Sunday, the first batch of imported formula arrived in the US. The first flight of “Operation Fly Formula” landed in Indiana with more than 70,000 lbs. of formula on board.