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- The Federal Trade Commission (FTC) has launched an inquiry into the ongoing infant formula shortage in the country, seeking information on any unfair business practices aimed at exploiting the consumers, the agency announced on Tuesday.
- "We have been monitoring and will continue to monitor the ongoing infant formula shortage, which is causing enormous anxiety, fear, and financial burden for American families," FTC Chair Lina Khan said in a statement.
- The investigation is expected to reveal the factors that have weakened the competition and made the supply chains of baby formula vulnerable.
- The recent shortage was made worse when Abbott (NYSE:ABT), the maker of Similac baby formula, announced a product recall and shut its Sturgis, Mich., manufacturing plant early this year in response to several consumer complaints.
- Other companies operating in the U.S. baby formula market include Reckitt Benckiser (OTCPK:RBGPF) (OTCPK:RBGLY), and the Gerber division of Nestle (OTCPK:NSRGF)(OTCPK:NSRGY)
- Abbott (ABT), a key baby formula supplier for 34 states under the WIC program, has agreed to extend the rebates through Aug. 31 in the contracted states.