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The state Division of Consumer Affairs has issued at least 514 cease-and-desist letters and 89 subpoenas to businesses reported to have violated laws during the pandemic, state Attorney General Gurbir S. Grewal said Wednesday.
The state has so far received 2,978 complaints involving 1,800 businesses related to the COVID-19 emergency, Grewal said.
About 90 percent of the complaints involve inflated prices for surgical masks, hand sanitizer, disinfectant spray and wipes, food, bottled water, and other health-related items, he said. Other companies are accused of falsely marketing ineffective products.
“When people are concerned about keeping their families healthy and paying their bills, they shouldn’t have to worry about becoming the victim of unscrupulous market practices," Grewal said.
About 40 NJ merchants are under investigation for using online sites like Amazon, Craigslist and Facebook Marketplace to sell overpriced products, state officials said.
Paul R. Rodríguez, acting director of Consumer Affairs, said his division is reviewing thousands of potential violations.
"We ask consumers to take advantage of our new online complaint form, which now allows them to submit photo evidence when they report suspected violations," Rodriguez said.
New Jersey’s price-gouging law took effect on March 9, when Gov. Phil Murphy declared a state of emergency due to the coronavirus outbreak.
The law prohibits excessive price increases during a declared state of emergency and for 30 days afterward. A price hike is considered excessive if it's more than 10 percent higher than the price charged before the state of emergency.
Price-gouging violations are punishable by fines of up to $10,000 for the first violation and $20,000 for subsequent violations. Violators also may be required to pay consumer restitution, attorney’s fees and investigative fees. Each sale is considered a separate violation.
Click here to access the state's consumer complaint form.
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