Beware of Price Gouging and Scams

The Department of Justice has received 196 complaints alleging Helene-related price gouging.

Businesses cannot unreasonably raise the price of goods or services to profit from a state of emergency.

Most complaints are related to fuel, groceries, and hotel costs, with the majority of complaints related to businesses in Buncombe, Cleveland, Madison, and Mecklenburg counties.

The Attorney General’s Office is investigating these complaints and has already sent four civil investigative demands to learn more about some of these concerns.

“I have seen firsthand the devastation people in western North Carolina are facing,” said Attorney General Josh Stein, who is the Democratic nominee for governor. “The people I’ve spoken with have more than enough to worry about as they recover and rebuild. The last thing they need is a scammer coming in to take advantage of their desperation. If you see price gouging or any other scam, please report it to my office so we can investigate and take action.”

North Carolina’s law against price gouging, or charging too much in times of a crisis, goes into effect when the governor or the legislature declares a state of emergency. In some cases, businesses and industries that are heavily impacted by the incident causing the state of emergency have a reasonable need to increase prices in order to resupply, but they should disclose these increases so people can make informed purchasing decisions. Businesses cannot, however, unreasonably raise the price of goods or services to profit from a state of emergency.

As people begin to recover from Hurricane Helene, Attorney General Stein is reminding North Carolinians to remain vigilant against scammers who claim to help repair or fix your home or property. Follow our tips to keep you and your loved ones safe from disaster repair scams.

Do your research. If a storm damages your property, you may need repairs. Be sure to get a written estimate from contractors before rushing into a deal. Getting an estimate will ensure you are not getting overcharged or scammed, and will give you an opportunity to compare prices from other companies. Check out a business’s credentials and visit the Better Business Bureau or call the AG’s office to make sure the company does not have complaints against them.

Do not pay upfront. Some companies may pressure you to pay the full cost up front before they start the work, but then will fall short of what was asked of them. Pay your contractors as you go, once you are satisfied with the work they have done, and hold back a percentage until the job is done. If a business requires a downpayment, do not pay them without getting a written contract first. Pay with a credit card when possible so you have added protection in case of a dispute.

Be wary of limited-time assistance. Some businesses may offer special “now or never” deals to your family following hurricane damage. A lot of these offers might come directly to your door, with out-of-state companies showing up at your doorstep and offering to do work immediately. If the deal seems too good to be true, it probably is. Don’t sign unless you’ve done your research.

Be on the lookout for price gouging. Some businesses will raise their prices to exploit times of crisis. Remember, if NC’s Governor declares a state of emergency, North Carolina’s price-gouging law goes into effect.

File price gouging complaints at 1-877-5-NO-SCAM or www.ncdoj.gov/pricegouging.

 

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