Report: Majority of Sellers in City Are Overcharging for Milk

More than 85% of milk sellers in the city are charging illegally high prices, a new report says.

The "Milk Money" survey, released yesterday by elected officials at City Hall, found that an overwhelming majority of milk distributors, from supermarkets to bodegas, overcharged an average of $0.40 for the grocery staple.

New York State's 17-year-old milk price-gouging law regulates the price of milk based on the size of the retailer and costs of production, among other factors. The price threshold is recalibrated monthly: This month, it is $3.93 for a gallon, $2.01 for a half-gallon, and $1.04 for a quart.

The report was released by the speaker of the City Council, Christine Quinn, and council members Eric Gioia and Letitia James.

Ms. Quinn yesterday called for enforcement of the law, as well as clearer information about the price thresholds, for producers as well as consumers.

"I don't think New Yorkers know that there's a law on the books," she said.

But a spokesman for the Neighborhood Retail Alliance, Richard Lipsky, took issue with her statement, saying the council's focus should be on reducing taxes and regulations, not adjusting price ceilings.

"If the retailers are doing such a good job gouging, they'd be going out of business," he said. "The cost of doing business — that should be the final objective."

The report surveyed 458 units of milk from around the city. Information about the monthly price limits will be posted at the Web site of the New York State Department of Agriculture and Markets.