Alert! DOJ and FTC Issue Fraud and Price Gouging Warning as Hurricane Milton Approaches

As hurricane seasons roll around each year, the United States Department of Justice (DOJ) and Federal Trade Commission (FTC) continue to enhance their efforts to protect consumers from potential fraud and price gouging. This year, with the impending landfall of Hurricane Milton, these agencies sent strong warnings to the American public about the potential risks they could face, aiming to help them navigate through these tumultuous times safely. One of the leviathans of the fraudulent field that the DOJ and FTC continue to grapple with is price gouging. Price gouging typically occurs when sellers spike the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair. It commonly happens during times of crises, where panic buying ensues and resources become scarcer than usual. In anticipation of Hurricane Milton, these agencies have expressed their vigilance towards such unethical practices and urged consumers to be cautious. The DOJ and FTC, with their consumer protection mandates, emphasized that price gouging is not only grossly unfair but also illegal. There are laws in place across almost all states to prevent businesses from excessively hiking prices during emergency periods. While the specifics of these laws can vary, the objective remains the same – to protect consumers from being exploited during times of need. Another significant area of concern highlighted by these agencies is disaster-related fraud. Unfortunately, natural disasters attract fraudulent actors who exploit the fears and vulnerabilities of individuals affected. These fraudsters may pretend to be government officials, insurance agents, contractors, or charity entities trying to provide relief. They might offer to expedite or enhance insurances claim services, offer unnecessary and overpriced home repairs, or solicit fraudulent charity donations. Both the DOJ and the FTC have taken significant actions in the past against such unscrupulous individuals and organizations. The agencies have been proactive in investigating reports of fraud, prosecuting those responsible, and educating the public about how to identify and avoid these scams. To counter these potential cases of fraud, the DOJ and FTC are encouraging people to verify the identity of any person or organization asking for money. They suggest keeping personal information secure and not sharing it with anyone unless its necessity and the receivers’ credibility are confirmed. Furthermore, if contacted by someone claiming to be a government representative, consumers are advised to reach out to the relevant agency or organization directly to verify the information. Using digital payment methods, like credit cards, for transactions can also offer an additional layer of protection. With these methods, there are options to dispute