FMI Applauds Congress for Reauthorizing WIC Program With Reforms That Benefit Consumers -- Reforms Will Lower the Cost of WIC Products, Streamline Service and Curb the Counterfeiting and Illegal Sale of Infant Formula

WASHINGTON, DC — June 24, 2004 — “Congress has renewed the Women, Infants, and Children (WIC) program with much-needed reforms that will cut costs for consumers, ensure access to WIC products and curb the counterfeiting and illegal sale of infant formula,” said Food Marketing Institute (FMI) President and CEO Tim Hammonds today, commenting on the Senate and House votes yesterday and today to reauthorize the program for the next four years.

“One cost-saving change we’ve advocated for years is to allow consumers to buy private-label or store-brand products with their WIC benefits,” he said. “Mothers in the WIC program should have the full range of options available to everyone else.” This provision, though not in the bill itself, is in both the Senate and House Agriculture Committee reports on reauthorizing the WIC program.

“The legislation institutes strict safeguards on infant formula sales,” Hammonds said. These products can be bought only from companies licensed to sell them, and the manufacturers must be registered with the Food and Drug Administration. “These provisions will protect against the sale of substandard, illegally packaged formula with expired sell-by dates — a crime often committed by organized retail theft rings.

“Consumers will also benefit from more flexible licensing, allowing stores to quickly reapply for WIC licenses when ownership changes hands.”

“The measure will significantly streamline administration,” Hammonds said, “through the creation of a national Universal Product Code database for all states to use. This provision will speed transactions and reduce errors in authorizing products that qualify for WIC benefits.

“For the industry,” he added, “We are especially pleased with the provision requiring that retailers be notified immediately in writing of any program violations. Often, retailers don’t find out until after they are fined or their licenses are pulled. Immediate written notification will enable retailers to fix any WIC problems quickly, which is really what we all want.”