AG receives over 75 price-gouging complaints amid coronavirus pandemic
Over 75 price-gouging complaints have been filed with the Michigan Attorney General’s Office in relation to the COVID-19 pandemic.
The demand for cleaning and hygiene products is very high, as the number of confirmed coronavirus cases continue to climb in Michigan. As of Friday, that number statewide stood at
25 with more than 137,000 confirmed cases worldwide, according to a tally by Johns Hopkins University.
To date, the AG’s office has found two of these complaints to be credible and have sent letters to both businesses asking that the price-gouging activity stop or else legal action would be taken.
“These letters are essentially asking businesses to provide us more information if they want to avoid further investigation or action by the AG’s office,” said Ryan Jarvi, press secretary, Michigan Attorney General’s Office. “We will evaluate those responses to determine what action is appropriate.”
The Oakland Press received copies of both letters, one sent to Ann Arborbased A.M. Cleaning LLC., on Friday, March 13, and one to Supplies LLC and an Allendale-based True Value hardware store on Friday, March 6.
According to the letters, the True Value store was reported to have been selling face masks for $6 to $7 each. The packages of 10 had been reported as selling for around $29, which the business confirmed to the AG’s office.
“We understand you believe True Value Allendale has done nothing wrong,” read the letter. “We disagree. But we can work with you on a resolution that will avoid the need to involve the courts in this matter.”
A.M Cleaning LLC., had posted a picture on its Twitter account advertising Purell hand sanitizer at prices of $20, $40, and $60. The posting offered the product at $5 per gram.
“Given the well-known fears surrounding coronavirus, it is apparent your store was seeking to position itself to profit from an evolving public health emergency,” read the letter. “From this point, this office has the latitude to either commence a lawsuit after 10 days or involve a judicial process for a formal investigation through subpoenas.”
Bills introduced in the Michigan Senate by Sen. Jeremy Moss (D-Southfield) and Ruth Johnson (R-Holly) would define price gouging as businesses raising prices above 10 percent of what consumer goods, lodging, or energy products cost immediately prior to an emergency situation. AG Dana Bessel supports the legislation.
“This legislation helps further protections for consumers and gives my office and local prosecutors additional tools to investigate violations and enforce the law,” said Nessel. “This legislation provides increased safeguards for consumers and I fully encourage the Legislature to support these commonsense protections.”
Jarvi said every complaint about price-gouging related to COVID19 is being “carefully considered.” He encourages consumers to file official complaints online at mi.gov/agcomplaints or by calling 1-(877)-765-8388.