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“We expect that, by the end of the weekend, we will have issued 100 subpoenas to gas stations, requiring them to provide their receipts and other information to demonstrate their prices, and the costs they faced, both before and during the state of emergency,” Attorney General Jeffrey S. Chiesa said.
But it doesn’t end there. Consumers have complained of price-gouging at eateries, hotels and home supply stores.
“Having visited some of the hardest-hit areas of our state, and having seen firsthand the suffering people are experiencing, I assure New Jersey’s residents and retailers that we are taking a zero-tolerance approach to price gouging,” Gov. Christie said.
“We are not asking businesses to function as charities. We require that they obey New Jersey’s laws – or pay significant penalties,” the governor said.
Most of the complaints have come in from Bergen, Essex, Middlesex, Monmouth, Ocean, and Passaic counties.
They include:
· GAS: Prices in some cases rose by $1 or more per gallon immediately following the storm, in some cases exceeding $5 per gallon, consumers reported. They also said some stations are charging more to fill up hand-held canisters than tanks — a direct violation of the law;
· FOOD: Unexpectedly high prices have been reported at convenience stores and restaurants in certain areas, affecting consumers who are unable to cook a hot meal at home due to power outages;
· LODGING: Complaints have come in about hotels and motels hiking prices significantly;
· OTHER: Generators, batteries and non-gas fuel, such as propane in some cases doubled, consumers said.
“Our investigative teams will continue to take consumers’ calls and investigate complaints through the weekend,” Chiesa said.
Consumers who suspect price gouging or any other violation of consumer protection laws, particularly as a result of Hurricane Sandy, are urged to call the state Division of Consumer Affairs: 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.
And be sure to get receipts, said Eric T. Kanefsky, the agency’s acting director.
“Some businesses reportedly refused to issue receipts, or stated that their cash registers were unable to provide automated receipts due to power failures,” Kanefsky said.
No matter.
“You are still entitled to demand a written receipt that indicates the business sold you a given item for a given price on a given day. If it becomes necessary to file a complaint with the Division of Consumer Affairs, you will want to provide copies of receipts and any other documentation that may be available.”
For those who were wondering: New Jersey’s price gouging statute, N.J.S.A. 56:8-107, et. seq., makes it illegal to set excessive price increases during a declared state of emergency or for 30 days after the termination of the state of emergency. The law defines excessive increases as any more than 10 percent higher than the price at which the merchandise was sold in the usual course of business prior to the state of emergency.
If the seller faces additional costs imposed by suppliers or logistical concerns, an excessive increase is any that is 10 percent above the normal markup from cost.
Violations are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses. Each individual sale of merchandise is considered a separate and distinct event.
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