Attorney General Herring letters to 42 businesses, cracking down on price gouging

Attorney General Herring letters to 42 businesses, cracking down on price gouging
The Attorney General’s office says the letters informed businesses that they are the subject of a price-gouging complaint, ask for documentation pertaining to the complaint and advise the businesses to immediately stop any illegal price gouging practices.

RICHMOND, Va. (WWBT) - Attorney General Mark Herring has taken further actions to crack down on price gouging in Virginia by sending warning letters to 42 businesses about which Virginians have complained.

The Attorney General’s office says the letters informed businesses that they are the subject of a price-gouging complaint, ask for documentation pertaining to the complaint and advise the businesses to immediately stop any illegal price gouging practices.

“It is unfortunate that businesses will take advantage of a situation like a public health crisis to try and make more money off of necessary goods like hand sanitizer, cleaning supplies, face masks, or water,” Attorney General Herring said. “My office and I take price gouging complaints very seriously and I hope that these letters will send a strong message to businesses across Virginia that price gouging will not be tolerated here.”

The letters explain that the Office of the Attorney General has the authority to investigate possible violations of Virginia’s Post-Disaster Anti-Price Gouging Act and to bring enforcement actions to enjoin violations, seek restitution for affected consumers, and recover civil penalties, attorney’s fees, and expenses.

The letters seek certain documentation from the businesses regarding their pricing practices before and after Governor Ralph Northam’s declaration of a state of emergency on March 12, 2020.

Importantly, the letters warn the businesses that the failure to cease and desist from engaging in any unlawful price gouging may be considered evidence of a willful violation for purposes of an award of civil penalties under the Virginia Consumer Protection Act.

Governor Ralph Northam’s declaration of a state of emergency triggered Virginia’s Post-Disaster Anti-Price Gouging Act, which prohibits a supplier from charging “unconscionable prices” for “necessary goods and services” during the thirty-day period following a declared state of emergency.

Items and services covered by these protections include but are not limited to water, ice, food, cleaning products, hand sanitizers, medicines, personal protective gear and more.

The basic test for determining if a price is unconscionable is whether the post-disaster price grossly exceeds the price charged for the same or similar goods or services during the ten days immediately prior to the disaster.

Consumers can contact Attorney General Herring’s Consumer Protection Section for information or to file a complaint:

· By phone: (800) 552-9963

· By email: consumer@oag.state.va.us

· Price Gouging Complaint Form - *Preferred method of submitting complaints

· General Online Complaint Form

Suspected violations of Virginia’s Anti-Price Gouging Act should be reported to Attorney General Herring’s Consumer Protection Section for investigation, as violations are enforceable by the Office of the Attorney General through the Virginia Consumer Protection Act.

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