Previous Story
‘Price gouging complaints have no merit’
|
Posted on Sep 11 2004
Except for a hardware store that had already rolled back its prices of certain construction materials, the Attorney General’s Office has ruled out several cases of price gouging complaints after finding that they do not have merit.
CNMI consumer counsel Brian Caldwell said the complaint that a Kagman retailer allegedly jacked up the price of rice after the onslaught of Supertyphoon Chaba turned out to be false.
Elements of the Attorney General’s Investigative Unit also found out that the major Saipan supermarket—which became the subject of a complaint for increases in the prices of candles—actually implemented the price changes before the Chaba disaster.
Because none of the complaints turned out to be meritorious, Caldwell said no price gouging case has been brought to the courts.
He reiterated that the Saipan hardware store that was initially found to have engaged in price gouging has already complied with the AGO’s order to roll back prices to pre-disaster level.
The hardware store initially 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.
The AGO said consumers could 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 in Capitol Hill, Saipan.
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.
