Scammers are taking advantage of a baby formula shortage, Federal Trade Commission warns

Scammers are taking advantage of a baby formula shortage, Federal Trade Commission warns


Sod Tatong | Moment | Getty Images

Scammers are exploiting a nationwide baby formula shortage, tricking consumers into paying hefty prices through fraudulent online stores, the Federal Trade Commission said Wednesday.

The con artists lure “desperate parents and caregivers” via fake websites or social media profiles with images and logos of recognizable formula brands, according to a consumer alert. Consumers think they’re purchasing from a company’s official website but formula never arrives, the FTC said.

“Scammers exploiting the high demand for baby formula have sunk to new lows,” the agency said.

More from Personal Finance:
High-yield bonds may lose appeal amid rising interest rates
Better market days are coming. It’s just a question of when
How to sidestep a tax bomb when selling your home

A shortage of baby formula started early in the Covid-19 pandemic, but has worsened in recent weeks. The scarcity is partly due to the closure of a Michigan manufacturing plant in February; two infants who consumed formula produced there caught bacterial infections and died.

The Food and Drug Administration reached a deal with the plant’s owner, Abbott Nutrition, the nation’s largest formula manufacturer, on Monday to help ease the shortage.

The White House said last week it would make it easier to import formula from abroad, among other measures.

Tips

Here are some ways the FTC recommends avoiding a baby formula scam:

  • Use a search engine to check out the company or product. Use search terms like “review,” “complaint” or “scam.”
  • Only scammers will demand payment by gift card, money transfer or cryptocurrency. Paying with credit card often provides the most protection; you can sometimes get your money back if you ordered something that never arrived.
  • Know your rights. Sellers are supposed to ship an online order within the time stated in their advertisements (or within 30 days if the ads don’t give a time). If a seller can’t ship by then, it must give you a revised shipping date, with the chance to cancel for a full refund or accept the new shipping date.
  • Search for local resources. For example, your pediatrician may have formula in stock and might be able to help. Participants in the Women, Infants and Children (WIC) nutrition assistance program can contact their local office to find formula.



Source

JPMorgan’s top biotech and pharma picks for the second half
Health

JPMorgan’s top biotech and pharma picks for the second half

Biopharmaceutical stocks’ underperformance versus the broader market for a third-straight year is an opportunity for investors, according to JPMorgan. Analyst Chris Schott said in the firm’s June outlook for biopharma that the sector’s poor performance can be traced back to concerns over President Donald Trump’s tariffs and his ” most favored nation ” executive order. […]

Read More
How twin sister triathletes doubled down on sports success to raise health-startup millions from investors
Health

How twin sister triathletes doubled down on sports success to raise health-startup millions from investors

During their last year of completing work for doctoral degrees in physiology, twin sisters Michal Mor and Merav Mor started to compete in Ironman triathlon races. The demand for peak fitness led them to the realize the importance of understanding personal metabolism, and the lack of data being collected on it through devices accessible to […]

Read More
It’s not just AI — China’s quickly gaining an edge over the U.S. in biotech
Health

It’s not just AI — China’s quickly gaining an edge over the U.S. in biotech

Two graduate students research chemical products in a laboratory in Xiwangzhuang Town, Zaozhuang City, Shandong province of China, on Dec. 26, 2023. Nurphoto | Nurphoto | Getty Images BEIJING — For all the attention on U.S.-China competition in artificial intelligence, new studies point to China’s rapid rise in biotechnology, especially for drug and agricultural development. […]

Read More