Attorney General, Division of Consumer Affairs Warn Flood Victims to Beware of Price Gouging and Other Disaster-Related Fraud During State of Emergency

NEWARK – The Office of the Attorney General and the New Jersey Division of Consumer Affairs today warned residents in flood-ravaged New Jersey communities in Bergen, Essex, Monmouth, Ocean, and Passaic counties to beware of price gouging and other disaster-related consumer fraud in the aftermath of this week’s torrential rains.

“The majority of merchants and businesses in New Jersey would never take advantage of consumers during a State of Emergency, but we’re asking residents to immediately report anyone seeking to illegally profit from this natural disaster,” said Attorney General Grewal. “The state's price gouging laws and other consumer protections will be strictly enforced to protect residents from being victimized at a time when they're at their most vulnerable."

New Jersey's price gouging law prohibits excessive price increases within 30 days after a declared state of emergency, unless the time has been extended by the Governor. On Tuesday August 14th, Governor Phil Murphy signed Executive Order 33, declaring a state of emergency in the five counties and allowing for the extension of state resources, as necessary and as requested, into communities most directly impacted by flooding.

Excessive price increases are defined as price increases that are more than 10 percent higher than the price at which merchandise was sold during the normal course of business prior to the state of emergency. 

“We will not allow anyone  to unlawfully increase prices for food, gas, hotel rooms, generators, or other necessary items or services, or otherwise take financial advantage of flood victims as they struggle to recover,” said Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs. “The Division also stands ready to swiftly enforce the laws that protect consumers against repair scams, charity scams, and other disaster-related fraud. In times of emergency, we should all be looking for ways to help those in need, not take advantage of them.”

Price gouging violations are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses. Each individual sale of merchandise is considered a separate and distinct event.

Flood victims are often faced with thousands of dollars worth of repairs to make their homes habitable again. Homeowners can protect themselves from dishonest home improvement contractors by heeding the following tips:

For more tips on how to avoid flood-related fraud visit the Division’s website.

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