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NEWARK
– Attorney General Paula T. Dow and
the New Jersey Division of Consumer Affairs
today warned gasoline retailers, grocers,
and other merchants that price gouging is
prohibited during the State of Emergency
declared in advance of Hurricane Irene.
Dow and Thomas R. Calcagni, Director of
the Division of Consumer Affairs, reminded
retailers that the State of Emergency declared
by Governor Chris Christie automatically
activated New Jersey’s price gouging
law. The law makes it illegal to sell merchandise
at excessive price increases during a State
of Emergency or within 30 days of the termination
of the State of Emergency.
“During
life-threatening emergencies like this,
New Jerseyans should be looking out for
each other – not looking to scam each
other,” Attorney General Dow said.
“We will look closely at every complaint
about alleged price gouging. Anyone found
to be violating the law will face significant
penalties.”
The law deems price increases excessive
if they are more than 10 percent higher
than the price at which a good or service
was sold in the usual course of business
prior to the State of Emergency; or, if
additional costs are imposed by suppliers
or certain logistical concerns during the
State of Emergency, the increase is more
than 10 percent of the amount of markup
from cost, compared with the markup ordinarily
applied.
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.
“We
have received several complaints about alleged
price gouging. Retailers should know we
will conduct a thorough investigation, including
an audit of the merchant’s receipts
dating back to before the State of Emergency,
to examine each and every complaint,”
Director Calcagni said. “Anyone violating
the law will find the penalties they face,
far outweigh the profits of scamming their
fellow New Jerseyans during a time of great
need.”
Consumers who believe they have been cheated
or scammed by a business, or suspect any
other form of consumer abuse, can file a
complaint with the State Division of Consumer
Affairs by visiting its website, or by calling
1-800-242-5846 (toll free
within New Jersey) or 973-504-6200.
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