Online Price-Gouging Reports Surface, Says Frosh: MD Coronavirus

ANNAPOLIS, MD — Marylanders have reported skyrocketing prices for goods sold on Amazon and other online sites, said the state's attorney general. As part of his emergency orders Monday to close non-essential businesses and direct the state's response to the new coronavirus outbreak, Gov. Larry Hogan said the state will charge anyone price-gouging. That's defined as a profit margin of more than 10 percent on everyday household items and essentials.

Attorney General Brian E. Frosh on Wednesday joined 33 attorneys general to urge Amazon, Facebook, eBay, Walmart, and Craigslist to more rigorously monitor price gouging practices by online sellers using their services.

Maryland’s anti–price gouging law went into effect on March 23. In Maryland, retailers —including online retailers — who engage in price gouging are in violation of the Consumer Protection Act and may face civil penalties of up to $10,000 per violation and possible criminal prosecution.

“Our Consumer Protection Division has received reports of price gouging from all over Maryland since the beginning of the COVID-19 pandemic," Frosh said in a statement. "It’s unconscionable that retailers would take advantage of consumers during this worldwide pandemic crisis, and we will take every action we can to stop them. Online retailers are no exception. If they sell products or services to Maryland consumers, they also must comply with our anti–price gouging law.”

The attorneys general letter gave several examples of online price-gouging this month: on Craigslist, a two-liter bottle of hand sanitizer was being sold for $250; on Facebook Marketplace, an eight-ounce bottle was being sold for $40; and on eBay, packs of face masks were being sold for $40 and $50.

"Retailers who attempt to exploit this crisis for profit or personal gain will be prosecuted to the fullest extent of the law," Hogan's order banning price-gouging said. Read the emergency order.

Items that are protected by the price-gouging measure include: food, beverages, fuel, water, ice, medicine, personal care and hygiene products, medical supplies and equipment, cleaning products, pet food, auto parts, building supplies, computers, batteries, internet and phone service, and more. See the full list below.

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Violations of the anti–price gouging order are a violation of the Consumer Protection Act and are subject to consumer restitution and civil penalties of $10,000 per violation. A violation is also subject to criminal prosecution as a misdemeanor.

Attorney General Brian Frosh's office said file price-gouging complaints online at http://www.marylandattorneygeneral.gov/Pages/CPD/complaint.aspx. It helps to take a photograph of the product with its inflated price, and give details of the store and the product.

You can also call the state's Consumer Hotline at 410-528-8662.

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