In a timely move, the United States Department of Justice (DOJ) and Federal Trade Commission (FTC) have issued a joint statement warning consumers about the potential for fraud and price gouging in the days leading up to Hurricane Milton’s landfall. This warning mirrors a pattern of heighted vigilance expressed by both agencies in the face of natural disasters in recent years, as past experiences indicate a surge in fraudulent activities and price gouging during such calamitous occurrences.
With Hurricane Milton fast approaching, consumers are likely experiencing a heightened sense of anxiety, often resorting to last-minute preparations and purchases, thereby creating an ideal environment for fraudsters and unscrupulous merchants to exploit. This environment, typically marked by fear and urgency, invariably exposes consumers to a wide range of illegal activities, from deceptive business practices to inordinately priced goods and services.
Emphasizing this concern, the DOJ and FTC noted that while the hurricane’s onset could disrupt normal life to a considerable extent, it must not serve as an opportunity for criminals to exploit distressed consumers. Key areas of focus include home repair scams, charity scams, and misleading product promotions which often pop up like mushrooms after a rainfall, immediately following a disaster.
Home repair scams typically involve fraudsters posing as local contractors who make false promises about quick and cost-effective repairs, taking advantage of the urgency created by a natural disaster. On the other hand, charity scams consist of counterfeit organizations or individuals, claiming to represent reputable charities and preying on the benevolence of others, essentially siphoning money meant for those affected by the disaster.
Internet scams and misleading product promotions are another area of concern. These involve fraudulent advertisements for ‘survival kits’ or ’emergency supplies’ that are either grossly overpriced or simply non-existent. Online marketplaces and social media platforms are often inundated with these adverts during such times, with fraudsters leveraging the rush and confusion to evade detection.
Price gouging, another hotbed for legal intervention, usually involves unscrupulously hiked prices of essential goods such as food, water, gas, and other necessary supplies. While businesses are allowed to increase prices to reflect scarcity or costlier sourcing, exploitative pricing is deemed illegal, particularly when a state of emergency has been declared, as is the case ahead of Hurricane Milton.
To help consumers steer clear of these illegal activities, the DOJ and FTC have outlined a suite of guidelines. These include conducting thorough research on home repair contractors and charities, examining prices carefully before making purchases, and reporting any suspected fraud or price gouging to the authorities. More importantly, the agencies underscored the significance of maintaining a sense of calm and rationality amid the impending disaster, since fear-based decision making can often lead to falling prey to fraud or price gouging.
In light of the aforementioned potential risks, DOJ and FTC’s proactive stance is indeed commendable. Their warning, by raising awareness and providing actionable advice to consumers, promises to protect them from fraudulent practices and price gouging, likely reducing the overall impact of Hurricane Milton on affected individuals and families. Consumers, for their part, need to heed this warning, making informed and rational decisions while navigating through the turbulent times leading up to the hurricane.
