AG Grewal on price-gouging: stop or face consequences

NEWARK, NJ — Attorney General Gurbir Grewal and the New Jersey Division of Consumer Affairs announced March 17 that the division has sent or is sending more than 80 cease-and-desist and warning letters to businesses about which the division has received complaints of price gouging or other consumer protection violations related to the COVID-19 pandemic. Meanwhile, the division is dedicating its available resources to investigating complaints related to COVID-19, and keeping consumers informed about scam artists seeking to take advantage of consumers’ concerns about the virus.

“We are taking an all-hands-on-deck approach to consumer complaints about price-gouging and other abuses related to the COVID-19 pandemic,” Grewal said. “It’s times like these when the work of the Division of Consumer Affairs is most critical. People are looking to us for guidance and for protection, and it’s our job to be there for them in every way we can. I applaud the dedicated staff at the Division of Consumer Affairs, and their attorneys in the Division of Law, for their efforts to keep consumers safe during this difficult time.” 

“As public concern grows, we have made it our top priority to use the division’s resources to address emerging issues to protect consumers,” said Paul R. Rodríguez, acting director of the Division of Consumer Affairs. “Whether it’s protecting consumers from merchants who seek to prey on them financially or providing information and guidance to the licensed professionals they rely on for health care, we’re looking out for them.”

The division reports having logged a total of 619 complaints related to alleged COVID-19 price-gouging or other consumer protection violations, as of 2 p.m. on March 17. The number of complaints has more than doubled since March 12, when the tally stood at 270. Nearly all of the complaints were received since March 4.

The complaints include allegations that retailers are unfairly raising prices on surgical masks, hand sanitizers, disinfectant sprays and wipes, food, bottled water, and other items being purchased by consumers worried about protecting themselves from coronavirus.

The 619 complaints relate to a much smaller number of identifiable businesses, as some businesses have generated multiple complaints and some complaints have not included enough information to identify the business at issue. 

DCA has sent approximately 82 cease-and-desist or warning letters to businesses about which it has received complaints, or is sending those letters imminently. In addition, DCA has completed at least 159 inspections, and has issued or will imminently issue 13 subpoenas for additional information.

Gov. Phil Murphy triggered the state’s price-gouging law March 9 by declaring a state of emergency in response to the COVID-19 outbreak. New Jersey’s price-gouging law prohibits excessive price increases during a declared state of emergency and for 30 days after its termination. A price increase is considered excessive if the new price is more than 10 percent higher than the price charged during the normal course of business prior to the state of emergency.

Price-gouging violations are punishable by civil penalties of up to $10,000 for the first violation and $20,000 for the second and subsequent violations. Violators may also be required to pay consumer restitution, attorney’s fees and investigative fees, and be subject to injunctive relief. Each sale of merchandise is considered a separate violation.

If you believe price gouging is occurring, contact the Division of Consumer Affairs at 973-504-6240. A special voicemail box has been set up to address COVID-19–related price-gouging complaints and will be checked regularly, even outside of normal business hours. Leave your name, contact information, nature of the complaint, and the name and location of the business. Consumers should note the price of a good or service being sold, as well as the price prior to the declared state of emergency, if known.

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