SAN FRANCISCO (KCBS RADIO) – California's governor has signed an executive order aimed at preventing price gouging on infant formula as an unprecedented shortage continues.
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Gov. Gavin Newsom signed the action on Tuesday, which is intended "to help improve access for parents and caretakers" by prohibiting sellers from charging a price more than 10% over what was charged for the same product on Feb. 7.
The executive order also "gives additional tools" to prosecutors to take action against those who engage in price gouging.
"California continues to take urgent action to support families feeling the impacts of the nationwide formula shortage. We’re connecting families in need with helpful resources and working to improve access for all parents and caregivers to keep California families safe and healthy," he said.
A copy of the governor's order can be found here.
Newsom's order comes as Michigan's Abbott Laboratories recently restarted production – specifically on a specialty brand of its infant formula. The factory had shut down in February, resulting in a supply crunch that's impacted formula supply for parents and caregivers nationwide.
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