NY attorney general warns of Henri-related price gouging
State Attorney General Letitia James speaks during a news conference Aug. 3. Credit: EPA / Justin Lane
State Attorney General Letitia James on Monday issued a consumer alert urging residents to be aware of potential price-gouging schemes and warning local business owners not to attempt to profit off the aftermath of Henri, which is now a tropical depression.
"New Yorkers should be on the lookout for fraudsters who use natural disasters to take advantage of consumers," James said in a statement. "It is illegal for retailers or vendors to charge grossly excessive prices for essential goods and services during a state of emergency, and that includes those who try to exploit New Yorkers in the aftermath of Hurricane Henri."
On Sunday, the federal government issued a federal disaster declaration for 26 counties in the state, including Nassau and Suffolk.
As a result, the attorney general's office is reminding residents that the state price-gouging law "prohibits merchants from taking unfair advantage of consumers" by selling goods or services at an "unconscionably excessive" price during an abnormal disruption of the market or a declared state of emergency. In a statement released Monday, the attorney general's office said an excessive price would be represented by "a gross disparity" between the price of the product immediately prior to and after such an occurrence.
The state price-gouging law covers vendors, retailers and suppliers, and includes essential goods and services that are vital and necessary for the health, safety, and welfare of consumers or the general public, James said. These include food, water, gasoline, generators, batteries, flashlights, hotel lodging and transportation services, according to James.
Contract services for storm-related damage, both during and after a natural disaster, are covered by the state’s price-gouging law as well.
The attorney general's office offers the following advice for consumers:
- Get multiple estimates (at least three) from "reputable" contractors, including specific information regarding materials and services, prior to commencing any work.
- Insist on a written contract detailing the price and description of any work and materials needed to complete the contracted work.
- "Never" pay the full price for work up front.
- Check references for any contractor with the Better Business Bureau, as well as with local banks, suppliers and prior clients.
"Always contact references provided to you," the attorney general's office said, adding that consumers should be aware they have three days to cancel any contract for home improvements. All cancellations must be in writing, the attorney general's office said.
For additional information or to seek assistance, call 1-800-771-7755 or file a complaint online.
John Valenti, a reporter at Newsday since 1981, has been honored nationally by the Associated Press and Society of the Silurians for investigative, enterprise and breaking news reporting, as well as column writing, and is the author of “Swee'pea,” a book about former New York playground basketball star Lloyd Daniels. Valenti is featured in the Emmy Award-winning ESPN 30-for-30 film “Big Shot.”
