AGO: Complaints against price gouging increasing

Investigators from the Attorney General’s Office are now out in stores to check on retail prices of commodities, after receiving numerous complaints of price gouging on Saipan, Tinian, and Rota.

Besides the two hardware stores on Saipan, which were ordered to roll back prices of certain construction supplies such as tin, CNMI consumer counsel Brian Caldwell said he has been receiving other complaints, including one that accused a Tinian retailer of increasing the price of candles after the onslaught of Supertyphoon Chaba.

“Even a small increase in an emergency essential item such as candles and any other thing that would be needed in an emergency situation…will be considered as price gouging,” Caldwell said. The Tinian retailer allegedly hiked the price of candles by a few cents.

Caldwell also said he received complaints about price gouging of foodstuffs on Saipan and Rota, but these have yet to be verified by investigators as of press time.

The Attorney General’s Investigative Unit and the Department of Commerce have been conducting inspections on stores to ensure that prices of commodities are not improperly hiked.

Among the commodities whose prices are being monitored are water, rice, chicken, batteries, flashlights, and film, the Emergency Operations Center said.

Last Monday, Caldwell said at least two hardware stores on Saipan hiked prices of certain construction supplies, including tin, roofing nails, and wood. One of the companies 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.

On Tinian, however, Caldwell dismissed the complaint against a hardware store, after probers ruled out that the store did not gouge prices.

Supertyphoon 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.

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,” the AGO said.

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.

The AGO 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.