State Crackdown On Price Gouging Targets Hundreds of Violators

Simple Form Available Online to File a Citizen’s Complaint

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MORRIS COUNTY — The New Jersey Division of Consumer Affairs has issued approximately 514 cease-and-desist letters and 89 subpoenas to businesses reported by consumers to have engaged in price gouging or other consumer protection violations related to the COVID-19 pandemic.

Cases include investigations of brick-and-mortar retailers in New Jersey, companies from other states that are accused of increasing prices for New Jersey consumers, and sellers located in New Jersey who has been accused of raising their prices on online marketplaces.

In addition, about 40 merchants based in New Jersey are under investigation by the Division for engaging in price gouging or other consumer protection violations related to COVID-19 through their use of online marketplaces like Amazon, Craigslist, and Facebook Marketplace.

To date, the Division has logged a total of 2,978 complaints related to the COVID-19 emergency against about 1,800 business locations.

Morris County consumers who believe price gouging is occurring are encouraged to file complaints online to report specific details investigators can follow up on. Photographs of items being sold, receipts and pricing can now be uploaded to our new price gouging complaint form.

Approximately 90 percent of the complaints involve price increase on items including surgical masks, hand sanitizers, disinfectant sprays and wipes, food, bottled water, and other items in demand by consumers concerned about protecting their health and maintaining enough supplies for their homes.

“When people are concerned about keeping their families healthy and paying their bills, they shouldn’t have to worry about becoming the victim of unscrupulous market practices,” said New Jersey Attorney General Gurbir Grewal.

Paul Rodríguez, Acting Director of the Division of Consumer Affairs, said his agency is reviewing thousands of potential violations. He asked consumers to take advantage of our new online complaint form which allows them to submit photo evidence when they report suspected violations.

New Jersey’s price-gouging law took effect on March 9, when Governor Phil Murphy declared a state of emergency in response to the COVID-19 outbreak.

The law prohibits excessive price increases during a declared state of emergency and for 30 days after its termination. A price increase is considered excessive if the new price is more than 10 percent higher than the price charged during the normal course of business prior to the state of emergency.

Price-gouging violations are punishable by civil penalties of up to $10,000 for the first violation and $20,000 for the second and subsequent violations.