On May 23, the Federal Trade Commission announced that it will launch an investigation of the reasons behind the nationwide shortage of baby formula that is distressing parents, grandparents and childcare providers. The FTC is hoping to unearth the factors that have contributed to the consolidation of the baby formula market and the pertinent issues with the supply chains for baby formula.

Baby formula has been increasingly difficult to find in the United States after a major plant shut down in February due to alleged contamination by bacteria. That closure was prompted by a whistleblower complaint followed by a belated Federal Drug Administration investigation. On May 16, a consent decree was entered into with the FDA regarding that plant shutdown, which set conditions the plant must comply with to resume operation. Additionally, the Biden administration has invoked the Defense Production Act that will prioritize the delivery of ingredients used to produce baby formula and is airlifting the equivalent of 1.5 million eight-ounce bottles of formula into the United States from Germany and other countries.