Consumer Blog
Watch for fraud and price gouging after the ice storm
AG Nixon issued a consumer alert today. With so many power outages (mainly in southwest MO, mid-MO and western St. Louis metro), we expect to see the con artists come out of the woodwork.
Price gouging happens when a merchant jacks up the price of necessary supplies just to make money off storm victims. This might be hotel rooms, bottled water, firewood, generators, even ice, as strange as that sounds. (Power outage means fridge outage, which means you may need ice. Or just put your stuff on the back porch like I did.)
We saw lots of price gouging after the huge ice storm hit Springfield last year. Once the storm subsides and power is restored, we expect to see a lot of home repair solicitors coming door-to-door.
Our advice: avoid them. Some of these guys are storm chasers, following storm aftermath hoping to victimize needy homeowners desperate for repairs. Instead, work with companies you know or that are recommended to you by someone you trust. Call your local Better Business Bureau, our Consumer Protection Hotline at 1-800-392-8222 or search Know MO, our online consumer complaint database.
Technorati Tags: home repair scam, price gouging, storm chasers, moagoconsumer, consumer protection
Posted by on December 10, 2007 5:02 pm :: Comments (4) :: Permalink
4 Responses to "Watch for fraud and price gouging after the ice storm"
says:
December 10, 2007 4:18 pm
We've been without power since Sunday morning and the outage may last until late in the week.
Because of the power outage we are moving into a local hotel for a few days. I've also purchased gasoline, flashlights and batteries.
I have not experienced any price gouging (the people in Jeff City have been understanding and accommodating) but I have seen unmarked trucks and vans trolling the neighborhood looking for tree removal work.
Thanks for the tips.
says:
December 11, 2007 12:38 am
Thanks for a really informative post! What's the worst incident of fraud and price gouging do you know? I think it's really cruel of these people to take advantage of those in depressed circumstances.
says:
December 11, 2007 2:18 pm
Is price gouging illegal? How do you prove it? Thank you.
says:
January 4, 2008 11:12 am
To s_jenkins and Mommy:
AG Nixon has had great success with price gouging cases. See the link in my original blog post above for an example.
Yes, it is illegal under Missouri law, and the Attorney General has the jurisdiction to enforce it.
It's fairly easy to prove actually. We subpoena the documents of the retailer accused of price gouging. Using their own sales receipts and other paperwork, we are able to clearly show the price of an item before the storm and after the storm.
When a generator was selling for $400 before the ice storm and $750 afterward, we can make a pretty convincing case of price gouging.
Also, after Hurricane Katrina, several gas stations were accused of this. Their own documents showed that the wholesale price of gas did not increase right after the storm, but their price at the pump went up by $1 per gallon.
