'The nationwide formula shortage is a story of corporate power and monopolies,' said Ilhan, who is leading a call for an FTC investigation into the consolidated industry.
for a federal probe of the nation's concentrated baby formula industry amid a national shortage that has prompted emergency action from lawmakers and the White House.
"We are writing to urge the Federal Trade Commission to work with relevant federal agencies to investigate the U.S.
"This type of high market concentration may come at the cost of decreasing market redundancy and flexibility while increasing the risk of sector-wide shortages—even if a single plant ceases manufacturing," the document notes, referencing Abbott's recent facility closure and recall. The lawmakers are also concerned about how the Special Supplemental Nutrition Program for Women, Infants, and Children could be contributing to"such alarmingly high concentration" in the industry, due to exclusive contracts granted for the program, which boosts formula access for low-income families."We must make sure that no corners are being cut on any level when nutritional formula is such a necessity for many Americans," the letter asserts.
The Democrats are hoping for a response from Khan within the next month. Their call for FTC action came within hours ofon financial documents and whistleblower testimony about how Abbott used recent windfall profits to enrich shareholders even as equipment at a factory that was later shut down in connection with bacterial contamination"was failing and in need of repair."