Face mask distributor accused of price-gouging

The resident agent of a company that sells face masks is the latest to be issued a cease and desist letter from the office of Michigan Attorney General Dana Nessel for alleged excessive pricing.

The masks were being advertised on the website BeamerSmoke.com, operated by Commerce Township-based Smokehouse Distribution, which the AG’s office said is an assumed name for the Beamer Company.

According to the AG’s office, in early April, a consumer made a complaint about the company’s pricing of disposable, surgical-type masks which were selling at two for $18. The resident agent reportedly told an investigator from the AG’s office that the masks were purchased from a supplier for 56.4 cents each, which included shipping, and further said the two for $18 price was a clinical error on the website.

The price was dropped to $11.99 for two masks and later to $9.99 for two masks.

“Given the well-known fears surrounding Coronavirus, it is apparent you were seeking to profit from an evolving public health emergency at an extreme markup,” the cease and desist letter, dated May 8, states.

The letter further states that while BeamerSmoke. com doesn’t currently have face masks available for purchase, there are concerns about the company’s inventory. The agent reportedly told the investigator that the company sold just 17 face masks, nine cases of 2,000 each were purchased from the supplier.

“Our Office is concerned that you may still have inventory on hand that you will seek to sell at irresponsible prices during the ongoing Coronavirus pandemic,” the letter states.

According to the AG’s office, the pricing is considered “grossly excessive” and in violation of fair trade practices as identified in the state’s Consumer Protection Act.

While a lawsuit or formal investigation through subpoenas is possible, the AG’s office offers the option of voluntary compliance that would require compensation to affected customers. The company’s agent has been directed to schedule a meeting by telephone no later than May 22.