Walgreens has agreed to a settlement with the New York Attorney General’s office as part of addressing the company’s unlawful price hikes. As part of the deal, the pharmacy chain has agreed to pay $50,000 in penalties and donate 9,564 cans of baby formula, valued at $200,000 wholesale, to directly support New York families in need.
The investigation into Walgreens was sparked by consumer complaints and reports of excessive pricing on essential baby formula during a period of nationwide scarcity. Triggered by a series of supply chain disruptions and exacerbated by a significant product recall from Abbott Laboratories, the shortage posed serious challenges for families across New York and the United States. New York’s stringent price gouging laws, which prohibit exorbitant price increases during market disruptions, formed the basis of the legal action against Walgreens. The company’s subsequent settlement includes a commitment to refrain from future price gouging practices.
To facilitate the distribution of the donated formula, Walgreens will collaborate with several nonprofit organizations, including the Met Council in Queens County, FeedMore WNY, and the Buffalo Prenatal Perinatal Network in Erie County. These groups will ensure the formula reaches those most in need.
“Baby formula is the main source of nutrients and absolutely essential for thousands of our most vulnerable residents, our infants. During the formula shortage, families were panicked and struggling about how to feed their babies,” James said. “For Walgreens to take advantage of this crisis and jack up formula prices is not only illegal, but downright shameful. The thousands of baby formula cans secured by my office will go directly to help New York families who need it most. Today’s agreement should also send a clear message that my office will not tolerate any company that attempts to price gouge our state’s consumers.”
New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.