Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: New York AG warns of price-gouging in Buffalo area following recent severe snowstorm, (Nov 24, 2014)

New York Attorney General Eric T. Schneiderman has announced that his office has begun taking legal action against businesses engaged in price-gouging in the wake of the extensive snowfall that occurred in Buffalo and Western New York last week.

As the storm began, the AG’s office had issued an alert warning businesses to avoid inflating the price of necessary goods and services such as food, water, gas, generators, batteries and flashlights and encouraged consumers to report suspected cases of price gouging. Subsequently, the office received several price-gouging complaints, such as a store that increased the price of a gallon of milk by 28 percent – far more than allowed under the law – and snow removal companies that charged at least 3 times the amount of their normal service to plow driveways.

The Attorney General has already sent a cease and desist letter to one business accused of engaging in price gouging, and is investigating several complaint against other businesses alleged to have engaged in illegal price increases.

“While the response to the tragic storm in Western New York has been overwhelmingly positive, a small handful of shady businesses are looking to use this moment of crisis to make a quick buck,” said Attorney General Schneiderman. “Few things are more reprehensible than exploiting a tragedy to prey on your neighbors. My commitment to the people of Western New York is to fight every day to crack down on scammers and fraudsters trying to take advantage of consumers who have already been victimized by this storm.”

In the wake of the storm and with the prospect of extensive flooding with warming temperatures, residents may have to hire contractors for roof repair, flood repair, additional snow removal and the like. To prevent being victimized by shady home repair contractors and other, Attorney General Schneiderman offered the following tips to consumers: 1) Shop around; 2) Get it in writing; 3) Don’t pay unreasonable advance sums; 4) Get references; and 5) Know your rights. The Attorney General urged the public to report any potential occurrences of price gouging by calling 800-771-7755 or by logging on to the office's website at www.ag.ny.gov.

News: ConsumerProtection NewYorkNews