Consumers report more cases of price gouging

The Attorney General’s Office is looking into several cases of price gouging on Saipan, after receiving complaints against stores raising the prices of commodities such as rice and candles.

CNMI consumer counsel Brian Caldwell said investigators from the Attorney General’s Investigative Unit have been dispatched to verify consumer complaints.

Caldwell said his office received yesterday a consumer complaint alleging that a Kagman retailer increased the price of rice from $9 to $24—or by more than 150 percent.

The AGO also received a complaint against a major Saipan supermarket that allegedly raised the prices of candles, Caldwell added.

No action has been taken yet on these cases pending the outcome of the investigation. Once the probe finds out that the retailer and the supermarket engaged in price gouging, the AGO would issue them a cease-and-desist order to roll back their prices.

Recently, there were reports about a Tinian retailer that allegedly increased the prices of candles after the onslaught of Supertyphoon Chaba. In times of disaster, Caldwell said an increase in the prices of emergency items—albeit slight—could constitute price gouging.

According to the AGO, price gouging occurs when a business increases the price of goods “solely on the basis of a shortage of supply caused by natural disaster or any other emergency situation.”

It added that retailers engaged in price gouging face court action, which could result in the imposition of monetary fines, business closure, and criminal prosecution.

Caldwell said the AGO has not received any consumer complaint on the recent gas price increases, including those of Shell gas stations on Saipan, which implemented a gallon price increase of 8 cents effective Aug. 31.

A motorist who requested anonymity said petroleum companies should consider lowering prices of gas products during disasters, when consumption of the products are expected to rise.

Alternatively, he said the companies should consider allotting any volume of gas stock to assist in recovery efforts after the disaster, noting other contributions by the business sector. “Businesses should help the community, too,” he said.

Meanwhile, one hardware store that was found to have gouged the prices of certain construction materials—including that of tin—rolled back prices to pre-disaster level after receiving a cease-and-desist order from the AGO, said Caldwell.

Earlier, Caldwell said the hardware store on Saipan hiked the price of 512-square-foot tin from $23 to $25.99—an increase of almost $3 or some 13 percent from the pre-typhoon price.

Chaba reportedly destroyed or damaged at least 2,150 houses on Saipan, Tinian, and Rota. Some 323 houses were totally destroyed, 883 sustained major damage, while 944 had minor damage.

Saipan had the most number of wrecked houses, with 222 totally destroyed, 583 sustaining major damage, and 367 left with minor damage. Tinian had 28, 122, and 54, respectively; while Rota had 73, 178, and 523.

On Tinian, however, Caldwell dismissed the complaint against a hardware store, after probers ruled that the retailer did not gouge prices. He also clarified that the Tinian hardware that was investigated was not the Tinian Hardware Store.

The AGO strongly encouraged consumers to report suspected cases of price gouging at 664-2341, fax no. 664-2349, or email attorneygeneral@saipan.com. Complaints may also be brought personally before the AGO on Capitol Hill, Saipan.