Scammers seeking to exploit baby formula shortage, FTC warns

Scammers seek to take advantage of American parents struggling to find formula for babies in the midst of a national shortage of nutritional products, the Federal Trade Commission warned on Wednesday.

The agency urged consumers looking for formula on the Internet to be wary of people who say they sell branded products but do not offer them after someone makes an online purchase.

“Scammers exploiting the high demand for baby formula have fallen to new lows. They are appearing online and are fooling desperate parents and caregivers into paying high prices for the formula that never arrives,” the FTC said in a statement.

In some cases, scammers create fake websites or social media profiles and use brand logos and product photos to attract customers. They trick consumers into providing payment information for products they never receive. Others are getting customers on e-commerce platforms like eBay, charging hundreds of dollars for a formula that typically sells for less than $ 20.

Rising prices, or offering products at prices well above market, violate eBay’s policies and are banned from the site, a spokesman for CBS MoneyWatch said.

“Due to the current shortage, we are stepping up our manual review of the lists to protect ourselves from the rising price of the infant formula,” the spokesman said.

How to Avoid a Scam

The FTC urged consumers to investigate sellers before clicking “buy.” Regulators advise doing an internet search using the company name plus the words “review”, “complaint” or “scam” to see if they have been reported in the past.

Also consider the payment method you are using. Credit card companies often protect customers from scams and can help you get your money back if a product is bought but never delivered. And the FTC warned that sites that require payment by gift card, money transfer or cryptocurrency are scams.

Finally, regulators say consumers should use local and known resources. Check with your pediatrician to see if they have formula in stock or sign up for an exchange of formulas where consumers can order certain products and pair them with donors who have an additional supply.