Evers Issues Order Prohibiting Baby Formula Price Gouging

MADISON, Wis. (AP) — Democratic Gov. Tony Evers issued an executive order Tuesday barring price gouging on baby formula.

The order declares that a period of “abnormal economic disruption” exists in Wisconsin and prohibits wholesalers and retailers in the state from charging “unreasonably excessive prices,” defined in administrative code as prices more than 15% higher than prices over the last two months.

The order will be in effect for 90 days.

The formula shortage stems mostly from Abbott Nutrition’s plant in Sturgis, Michigan, which the Food and Drug Administration closed in February due to contamination issues. Abbott, one of a handful of companies that control the vast majority of the market for infant formula, then announced a massive recall of its product on Feb. 17, which led to the nationwide supply shortage.

Abbott and the FDA recently reached an agreement to reopen the plant next week. But it will take about two months before product is ready for delivery.