AG Herring takes further steps to crackdown on price gouging

~ Herring has sent warning letters to 42 businesses about which Virginians have complained ~

RICHMOND (March 31, 2020) – Attorney General Mark R. Herring has taken further actions to crack down on price gouging in Virginia by sending warning letters to certain businesses about which Virginians have complained. The letters inform the 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. So far, Attorney General Herring’s Consumer Protection Section has sent 42 letters to businesses in response to complaints made by Virginians.

“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,” said Attorney General Herring. “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.

Additionally, last week Attorney General Herring joined 32 attorneys general in urging Amazon, Facebook, eBay, Walmart, and Craigslist to more rigorously monitor price gouging practices by online sellers who are using their services.

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.

Consumers can contact Attorney General Herring’s Consumer Protection Section for information or 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
• Online Contact Form