The US Federal Trade Commission is looking into the possibility of fraud and price gouging as families struggle to buy baby formula in a national shortage.
The FTC would fully enforce the law against anyone who deceives, exploits, or scam families trying to buy formula supplies. Khan said the inquiry will help the agency understand how to avoid similar market failures in the future.
The announcement comes a day after NBC News reported that parents were seeing higher prices on websites. The outlet spoke with 13 parents across the US and reviewed over 100 listings that appeared to price gouge.
One seller told a parent that they have no right to interfere in his business.
Insider found examples on Ebay where sellers were charging double the suggested retail price for formula products. Some listings added shipping fees that were double or triple the price of the item.
Ebay has a reporting tool for shoppers to report price gouging, according to NBC. The FTC has a website called ReportFraud.ftc.gov.
In her statement, Khan said that the FTC will be on the lookout for automated systems that buy large amounts of formula from ordinary retailers and mark it up for sale to families.
Over the last few years, Americans have experienced cycles of supply chain disruptions, shortages, and stockpiling of remaining supplies.
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