Wisconsin Governor Evers Signs Executive Order Prohibiting Baby Formula Price Gouging
Supply is still short and store shelves have plenty of empty spaces, but Wisconsin Governor Tony Evers is prepping to ease the situation a little. Evers signed an Executive Order on May 26, dictating that stores can't charge "unreasonably excessive prices" for the next 90 days in the state.
According to the details of the Executive Order, it "declares that a period of 'abnormal economic disruption' exists in Wisconsin and [it[ prohibits wholesalers and retailers in the state from charging 'unreasonable excessive prices".
Evers promoted the Executive Order with an official statement on the formula shortage situation. In that statement, Evers discussed the ways that both the shortage and the potential for price gouging could hurt Wisconsin families:
"No kid should ever go hungry, and no parent should have to worry about having access to formula, especially if their infant has special nutritional needs. As families continue to feel the squeeze of rising costs and folks face difficulty getting supplies and resources quickly, this order makes it clear that retailers looking to take advantage of vulnerable families during this formula shortage will not be tolerated."
The Executive Order comes as news sources have reported that Wisconsin residents have been crossing the border to other states to obtain the formula they need. That border crossing for sourcing baby formula follows a pattern that's occurring all across the country.
So what constitutes "unreasonably excessive" for pricing? Evers' Executive Order spells it out in "administrative code as prices more than 15% higher than prices over the last two months".
The measure should ease demand, hoarding, and the potential for profiteering.
Nationally, there is the potential for light at the end of the tunnel in regards to the baby formula shortage. Abbott Nutrition - one of the largest plants in the United States, and the one that had been closed down due to a contamination problem - is expected to restart operations again next week.