On Wednesday, as Hurricane Milton neared landfall in western Florida, the Biden administration warned consumers and businesses of the heightened risk of potential fraud, price gouging and collusion associated with major natural disasters. .
“Bad actors seek to exploit the opportunities and victims of natural disasters for personal gain,” Ronald C. Gass Jr., United States Attorney for the Middle District of Louisiana, said in a statement.
Federal Trade Commission Chair Lina Khan said the agency has heard “alarming reports of price gouging on essential goods that people need to escape danger, from hotels to groceries to gasoline.” said.
By noon ET Wednesday, nearly a quarter of Florida gas stations were out of gas, according to Patrick de Haan, an oil and gas analyst who tracks pump supplies.
“Companies are being careful not to use the hurricane as an excuse to exploit people for illegal activities,” said Manish Kumar, assistant attorney general in the Justice Department’s Antitrust Division.
Most states have laws aimed at curbing price gouging, and many of these restrictions are related to declared states of emergency.
Several major airlines and retailers told CNBC in recent days that they had frozen prices ahead of the storm.
“Once we have an emergency, all prices are frozen,” Kelly Mayhall, president of Home Depot’s southern division, told CNBC on Wednesday.
In the midst of a historic hurricane season, the Biden administration is warning consumers of fraudulent charities claiming to collect donations for disaster victims, scammers seeking to obtain personal information and money, and exorbitant pricing of essential goods. He listed a number of issues that need attention. .
Vice President Kamala Harris said in a statement on Wednesday that “companies and individuals who seek to exploit Americans during emergencies are under threat. The administration is monitoring allegations of fraud and price gouging and will hold those who take advantage of the situation accountable. you should know.”
Hurricane Milton was moving through the Gulf of Mexico as a Category 4 storm early Wednesday afternoon and was expected to make landfall on Florida’s western Gulf Coast between 10 p.m. and 2 a.m. ET, according to NBC News meteorologists.
The National Hurricane Center warned that evacuations and other precautions should be completed by early Wednesday morning.
In September, Hurricane Helen caused widespread damage across the South, killing more than 230 people. North Carolina Attorney General Josh Stein has also warned about price gouging in his state.
