Attorney General Warns Against Price Gouging as State of Emergency Remains in Effect

State Attorney General Jeffrey S. Chiesa and the New Jersey Division of Consumer Affairswarned merchants against price gouging during a State of Emergency as Atlantic County confirmed the State of Emergency remains in effect for a third straight day on Monday, July 2.

The travel ban in Atlantic County has been lifted, but the county is warning drivers to "proceed with caution as there are still numerous downed trees and wires and many intersections without active traffic signals."

Chisea quoted state statute in noting it is "illegal to set excessive price increases during a declared state of emergency or for 30 days after the termination of the state of emergency."

“During life-threatening emergencies, New Jerseyans should look out for each other – not seek to take advantage of each other,” Chiesa said.  “We will look closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties.”

For the purposes of the statute, a “state of emergency” is defined as a natural or man-made disaster or emergency for which a state of emergency has been declared by the President of the United States, the Governor, or a municipal emergency management coordinator, Chiesa said.

States of Emergency are currently declared in Atlantic, Monmouth, Cumberland and Salem counties after a derecho with winds over 70 miles an hour tore through the Mid-Atlantic Region overnight Friday into Saturday.

The statute deems price increases excessive if they are more than 10 percent higher than the price at which a good or service was sold in the usual course of business prior to the State of Emergency; or, if additional costs are imposed by suppliers or certain logistical concerns during the State of Emergency, the increase is more than 10 percent of the amount of markup from cost, compared with the markup ordinarily applied, Chiesa said.

Violations of the price-gouging law are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses. Each individual sale of merchandise is considered a separate and distinct event, Chiesa said.

"Retailers should know we will conduct a thorough investigation, including an audit of the merchant’s receipts dating back to before the State of Emergency, to examine each and every complaint," Acting Director of the New Jersey Division of Consumer Affairs Eric T. Kanefsky said. "Anyone violating the law will find the penalties they face, far outweigh the profits of taking unfair advantage of their fellow New Jerseyans during a time of great need."

Additionally, Atlantic County is reminding residents to stay hydrated as the excessive heat in the area continues. The following cooling stations were confirmed for Monday:

Brigantine Community Center, from 9 a.m. to 5 p.m.;

Alder Avenue School in Egg Harbor Township, opening at noon; and

Linwood City Hall, which is currently open.