Price Gouging Enforcement
AG Grewal announced updates on the Division of Consumer Affairs’ actions to stop price gouging. As of this week:
- The Division has issued 99 subpoenas requesting additional information from retailers and online marketplaces alleged to have engaged in price gouging or other unscrupulous business practices during the COVID-19 emergency.
- Approximately 878 cease-and-desist letters have been sent, warning retailers about the penalties for violating New Jersey’s price-gouging law, and the Consumer Fraud Act’s protections from gross and unreasonable inflation of the price of any product during a state of emergency.
The Division has logged a total of 4,554 complaints related to the COVID-19 emergency against 2,476 locations. Nearly 90 percent of the complaints allege unlawful price hikes on essential items like food, bottled water, cleaning products, and personal protective equipment such as masks, disinfectants and sanitizers.
Examples of alleged price hikes that consumers have reported to the Division include:
- a supermarket allegedly selling a gallon of bleach for $8.99.
- a grocery store allegedly charging $6 for eggs, $5 for a gallon of milk, and $7.99 for a case of water, nearly double what it was sold for previously.
- a drug store allegedly selling small bottles of alcohol for more than $10 each.
- an auto repair shop allegedly charging $65 for an oil change that typically costs $35.
- a supermarket allegedly charging $8.49 for a pound of beef chuck that usually sells for $4.99 per pound or less.
- a pharmacy allegedly charging $15 for a single N95 mask.
- a food market allegedly raising the price of a can of disinfectant spray from $4.50 to $9 — a 100% increase.
In addition to price gouging, the Division is looking into complaints from consumers alleging unlawful refund practices as a result of closures related to the COVID-19 health emergency. To date, the Division’s overall complaints include 236 reports of health clubs, hotels, ticket agents and other businesses allegedly refusing to issue refunds after they closed or suspended services as a result of the
COVID-19 pandemic.
New Jersey’s price-gouging law, which took effect on March 9 upon Governor Murphy’s declaration of a state of emergency, prohibits excessive price increases during a declared state of emergency and for 30 days after its termination. A price increase is considered excessive if the new price is more than 10 percent higher than the price charged during the normal course of business prior to the state of emergency, and the increased price is not attributable to additional costs imposed by the seller’s supplier or additional costs of providing the product or service during the state of emergency.
Price-gouging and other consumer fraud violations are punishable by civil penalties of up to $10,000 for the first violation and $20,000 for the second and subsequent violations. Violators may also be required to pay consumer restitution, attorney’s fees, and investigative fees, and will be subject to injunctive relief. Each sale of merchandise is considered a separate violation.
Consumers who suspect consumer fraud, violations, or believe that businesses have unfairly increased their prices in response to COVID-19, are encouraged to file complaints online to report specific details investigators can follow up on. Photographs of items being sold, receipts, and pricing can now be uploaded to our new price gouging complaint form.
You should go to acme in barnegat Nj 4.79 a pound for ground beef and 5.49 for boneless chicken. INSANE!
Laurie Barone-Max yeah in Shop Rite too, but I don’t know if it’s price gouging or it’s just the going rate for now with the meat shortage.
It’s just crazy and honestly not fair to the people ????♀️
Laurie Barone-Max order meat from Okies or Bruno’s. I got a mths worth of meat from Okies. $160.00 and it’s faaaar better then anything ShopRite or Acme sells.
Laurie Barone-Max delivered to my front door also.
Laurie Barone-Max meat shortage.
They raise prices saying meat shortage. So after this they wont reduced the price.
Laurie Barone-Max 4.79 is not price gouging…it’s that price or more EVERYWHERE. The largest meat packing plant in the county isn’t shipping because they are understaffed. It’s called supply and demand.
Laurie Barone-Max that’s normal for acme ????????????
Laurie Barone-Max Acme down in Somers Point is $7.99 a lb for boneless chicken. Insane!
Laurie Barone-Max 5.49 foe boneless chicken doesn’t sound too bad. I buy bell and Evans and is always priced a little higher but worth it. I’d rather eat vegetarian for a couple meals and eat better quality meats.
This is at cost to a retailer for chicken breast.
The only thing this dumb ass does is sue the Trump administration he is a no nothing asshole
All the grocery stores are ripping us off. They should be ashamed of themselves trying to make it rich over a pandemic so sad.
Mara Thompson. Grocerys up 40 percent. Hand sanitizer up 200 percent what used to .99 cents cost over 5 bucks now
Lisa Martin so sad they are trying to rob us during these difficult times. Big business doesnt care about people only profit on our misfortunes.
Mara Thompson all?? You’re nuts. Major retailers are not gouging. Study up on regular prices.
Mara Thompson there is a meat shortage and there is not food to go around. There is no price gouging.
Paul Warren I get that but nothing is on sale for a reason so they can make that extra money. That’s all I’m saying.
Mara Thompson i was thinking its cause many are gave there people hazard pay which I agree with they deserve it and also because many places had to close and it costing a lot more to keep cleaning and supply ppe for the wonderful workers
I know this is a hard time for everyone.
Things aren’t on sale because of shortages! All deliveries to these stores aren’t back on track, no matter what the item may be. Can’t put stuff on sale and worrying about if you’ll be able to supply it to the customer or not.
Mara Thompson do you have any clue at all how low the profit margins are in a grocery store? Obviously not. Believe me, grocery stores are not making any money right now. They are payimg much higher prices for their goods, they’ve been guilted into paying higher wages, and they’ve incurred significant costs to put safety precautions in place for their employees. You should be ashamed of yourself for making unfounded acvusa4tions against a business about which you clearly know NOTHING.
Kathleen Strittmatter they are clueless. Many grocery stores are family owned franchises, amd havent seen any actually price gouging . These people have no clue about how business works and could care less what wholesale pricing is. The want a grocery store to sell them hand sanitizer for 99 cents even though they are now paying $3 or $4 for it. Grocery stores make a very low profit margin tp begin with and these people actually expect them to lose money. Zero comprehension of retail business or supply and demand.
Mara Thompson hi. I’m a food service coordinator for a privately owned grocery store chain in NJ. Nothing is on sale because supply chains are so interrupted. We are getting out of stocks on anywhere from 20-80% of our orders every day (5-7% is normal) we can’t ensure that we’re going to have product in stock to put on sale. We’ve have 11 entire orders (per store) from our main vendor cancelled since this started, at an average of $9000 cost. We want to put items on sale, but there’s no way to do it that won’t be a nightmare.
Mara Thompson you are so right. The greed during this epidemic is shameful. Like at doctors office trying to charge people 155.00 for a test to see of you have the virus. And than you can go to the PNC art center and have the same test done for free.
Here’s a good one a pack of masks (10)total and a box of gloves
What can I expect from Paterson
Rico Alëxænder what kind of masks?
Andrew the medical ones the blue white accordion type
That’s your choice to pay those prices…they are available elsewhere for reasonable prices.
Francine no shit genius
Was I complaining I was just informing people
it was last minute and I had needed them to go into the slaughterhouse
Rico Alëxænder what was $15
Rico Alëxænder right now they are being sold for about $1.25-1.50 a mask or $12.50-$15 for 10 masks. $24.95 for a box of gloves is not bad going rate is about $20-$25 a box at retail.
Now your going to ask how I know this is because I broker medical supplies. If you need them again I can send you to someone that has n95 and kn95 masks and gloves via phone. His name is Frank Abate
Andrew the cheap $1 store quality masks
Rico Alëxænder got it. Frank probably has those also.
Andrew
Rico Alëxænder about 1.25-1.50 per piece if you can find a place online you might be able to be around $.90-$1
i have them
In my personal truck I unfortunately was in my work truck
But it’s ok to charge more than $4.00 a gallon for gas cause it’s the going rate on the market????!!!!
Jason Garcia where are you seeing that? Everywhere I go it’s under 2
Jason Garcia wawa 1.80
How about checking Acme in Seaside. Prices way out of line
Dale Palladino they have always been higher on the island . Have to go over the bridge
Cease and desist letters your a joke how about arrest s
Stop N Shop in Point Pleasant is no better.
Lynn Pereira Rogalny-Nicusanti they have always been way overpriced…since the day they opened.
Every grocery has upped there prices
Bayville ShopRite was charging 2.19 a pound for drumsticks ????!! I think that’s double!
Trump2020.
This attorney general sucks!!!!
Anthony Smith is this to say you support price gouging?
???? Apparently some of you don’t understand price gouging vs. increased costs. Paying $45 for a roll of toilet paper is price gouging. Rising meat prices are due to supply/demand issues from idiots hoarding and lack of workers within the supply chain to get the food all the way to your table.
Why not just not buy what they are selling. I do it every week when I grocery shop. Price to high I don’t buy
Supermarket charging 7.00 a pound for chop meat in my area.
How many arrests for calling the China virus the China virus?
He’s is a criminal