With recovery from the massive blizzard still underway, the New York State Governor Kathy Hochul is working on establishing additional relief for people and businesses in the area. There were three main relief efforts to know about in the press release from the Governor;
- The New York State Department of Financial Services has requested all New York State and Federally Chartered Banking Organizations to provide some financial relief to all consumers as a result of the blizzard. Details of this communication can be found here.
- Insurance companies will have the capability to increase the number of adjusters they have to process claims with temporary permits. This will help consumers get their claims handled faster. Per the press release, “New Yorkers [are] encouraged to call DFS' Disaster Hotline at (800) 339-1759 for insurance-related questions”.
- Warning consumers to watch out for price gouging and report any suspected incidents.
Unfortunately, there are scammers and bad businesses that look to take advantage of consumers in a time of need. Charging more for products or services during a state of emergency often occurs but is illegal as per the New York State General Business Law Section § 396-r.
An important thing to note regarding price gouging is, “while the law specifically states an "unconscionably excessive price" is a question of law for a court to decide, a price is likely to be found "unconscionably excessive" if:
- The price being charged by the seller during the extreme weather or public health event is grossly greater than the price charged immediately prior to the onset of the extreme weather event by that same seller.
OR
- The price being charged during the extreme weather or public health event grossly exceeds the price for the same or similar goods and services readily obtainable in the affected area by other consumers.”
The Governor’s press release also provides these helpful examples of price gouging:
A: Hotels in the area within a Governor's State of Emergency typically offer rooms in the price range of $79 - $159 a night during the spring season. After the storm event, Hotel X, which normally offered rooms for $119 a night increased its prices to $229 a night. An approximately 90 percent increase in price affords Hotel X the opportunity of extreme profits under severe circumstances.
B: Local hardware store sold 50lb bags of sand for $25 prior to the storm. A Governor's State of Emergency was put in place. The local lake began rising, flooding surrounding homes, and the same bags of sand were now selling for $50 a bag, double the price. The big box store 10 miles away continued to offer the bags of sand for $25. Hotel X and the local hardware store appear to be engaged in price gouging.
The Office of Consumer Protection wants consumers to know what to look for to determine if price gouging may have occurred. For more information on price gouging and to learn how to report it, please visit the Erie County Consumer Protection website.
If you have any questions or need assistance with a storm-related complaint, please contact our office at 716-858-1987 or by email to consumerprotection@erie.gov.
