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NY, NJ Investigate Price Gouging in Sandy's Aftermath

Monday, November 05, 2012

Officials in New York and New Jersey are investigating whether merchants have been artificially inflating prices to take advantage of customers in the aftermath of Sandy.

"Investigators are going out and they're trying to assess where there's price gouging and where there are folks just passing along increases in wholesale prices," said New York Attorney General Eric Schneiderman in an interview.

His office has received more than 500 complaints of alleged price gouging at gas stations, bodegas and other businesses.

In New Jersey, the Division of Consumer Affairs has received upwards of 1,200 complaints — 85 to 90 percent of them for the state's gas stations where lines have stretched as far as a mile and a half long.

"The overwhelming majority are related to gas station issues," said Eric Kanetsky, acting director of the New Jersey Division of Consumer Affairs. "They were particularly bad in the days immediately following the storm."

The NJDCA has already issued more than 100 subpoenas.

But proving these types of cases has been difficult. After Hurricane Katrina, a study from the Federal Trade Commission found that most cases of alleged price gouging following the storm were not legitimate.

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Comments [2]

Stuart H. Tresser from Brooklyn, New York

Whenever there is a crisis, there are greedy people looking to take advantage of the situation. I am wondering why only HESS is able to get gasoline into New York City? Other companies are somehow hampered, and have not been able to restock their gasoline outlets. Something corrupt is going on here, greed. There is no excuse to wait on a gas line for 5 or more hours only to find out they ran out of gasoline when it's your turn at the pump. Power has been restored to most of Brooklyn, so where is the gas?

Nov. 06 2012 02:10 PM
dave from Harlem

Ha, isnt that capitalism? shameful it is in all its guises....

Nov. 06 2012 07:57 AM

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