Strict Insufficient milk powder The Federal Trade Commission has urged industry integration and the start of an investigation into whether online resellers have used desperate families who are struggling to find officials.
“The FTC has begun a public inquiry to identify the factors that caused the deficiency or hindered its ability to respond to the deficiency,” officials chair Lina M. Khan said Tuesday. Said in a statement. “Learn from this experience will help us determine how to minimize the risk of similar shortages in the market for other life-sustaining products.”
The agency said it would investigate merger and acquisition patterns to better understand how the industry understands — Currently dominated by four manufacturers — Very focused and how the integration will inform future merger reviews. FTC will also consider federal regulations and trade barriers that prevent foreign companies from entering the infant formula market.
Read more about infant formula shortages
Federal authorities are also seeking public opinion on cases where families believe they have been scammed when trying to buy a formula or have been forced to pay exorbitant prices from online resellers.
The U.S. infant formula has been closely monitored for the past few weeks, and lawmakers and consumer advocates have long controlled the production of important sources of infant nutrition by just a handful of players. I am wondering. Abbott Nutrition, which dominates about 48% of the market, disrupted the infant formula market in February. Voluntary collection Shut down plants with some of its most popular powder formulas After 4 babies People who have consumed some of Abbott’s products have become ill with a bacterial infection. Abbott states that there is no evidence that the prescription caused the four diseases, and that samples of the bacterium Cronobacter Sakazaki from infants do not match the strains found in the plant.
Due to a serious shortage, parents are desperately looking for food for their children and limiting the sale of infant formula. The Biden administration is taking steps to alleviate the supply shortage. Invoking the Defense Production Act Strengthen manufacturing.
The investigation follows a growing call from lawmakers to investigate and overhaul the industry. Senator Tammy Duckworth, a Democrat in Illinois, urged the FTC this month: Start extensive research into the industry And the market conditions that led to the shortage.
Navigating infant formula shortage in the United States
Increasing problems. National shortage Infant formula — Supply chain issues Worse due to recall According to baby food maker Abbott Nutrition — parents are confused and worried. Here are some ways to manage this uncertainty:
FTC said it will work with the agricultural sector to investigate the impact of programs that help low-income households buy formulas and help large contracted companies become industry giants. A special supplemental nutrition program for women, toddlers and children, well known as WIC, provides states with subsidies to make food available to low-income pregnant and postnatal women and their children. A federal-funded program provided. The program is managed by a state agency and purchases more than half of the total supply of infant formula in the United States.
The state WIC agency cannot legally purchase formulas from any manufacturer. They need to bid competitively on the contract and choose one company that will be the official exclusive provider for all WIC recipients in the state. In return, manufacturers need to give the state a significant discount on formulas.
Researchers say the bidding system can make it more difficult for SMEs to enter the market. According to a study by David E. Davis, a professor of economics at South Dakota State University, brands with exclusive contracts are becoming more prominent in stores, increasing sales for families who do not receive WIC benefits.
