This week, the Federal Trade Commission (FTC) has opened an investigation into the baby formula shortage crisis. If you’re looking for more information on what is being done to address this problem, keep reading below. You will get a better understanding of what’s going on and what the next steps will be as well. 

Unfair Practices

One of the main parts of this investigation will look at the deceptive or fraudulent business practices going on that try to take advantage of families. The FTC will also try to figure out the different factors that go into the high concentration of baby formula supply in only a few manufacturers. 

The FTC needs to learn how this shortage happened so quickly, and prevent something like this from happening again in the future. 

Request For Information 

The Request For Information seeks public input on whether the FTC itself or other state and federal agencies may have accidentally taken steps that made the supply chains for this market worse. People are encouraged to leave comments on this issue here. 

Mergers And Acquisitions

The FTC will investigate the pattern of mergers and acquisitions in the baby formula market to get a better picture of how this supply chain concentration came to be. The FTC wants people’s opinions on this and to also share their experiences with baby formula purchases. Let’s take a look at the topics the FTC wants to address. 

Fraud

If any family has experienced fraud, deception, or other scams when trying to buy baby formula or has been forced to pay high prices from online retailers. 

Women, Infants, Children 

Families’ experiences buying baby formula through the Supplemental Nutrition Program for Women, Infants, and Children (WIC). 

Small Business

If any small or independent businesses have experienced difficulties getting supplies of baby formula compared to larger retailers and businesses. 

FDA Regulations 

The impact of FDA regulations on the number of baby formula suppliers, capital investment, and overall manufacturing ability. 

Other Barriers

If there are other factors that prohibit companies outside the US from competing in the baby formula market. 

Information Brings Change

By doing these investigations and learning more about supply chains and manufacturers, the FTC will get a better understanding of what caused the baby formula shortage. More importantly, these inquiries will help them prevent something like this from happening in the future as well.