AG Warns Of Potential Price Gouging In Wake Of Halloween Storm

The state attorney general is warning the public to be aware of the potential for price gouging in the aftermath of the storm that impacted parts of New York on Halloween. The next day, Gov. Andrew M. Cuomo declared a state of emergency in 12 counties — including Dutchess County — that experienced widespread power outages and road closures after the storm that featured heavy rain and high winds.

Attorney General Letitia James said New Yorkers should remain wary of dishonest fraudsters who use natural disasters as an excuse to illegally line their pockets.

"We will hold accountable those who seek to exploit times of urgency," she said.

"I urge anyone who believes they may have been a victim of price gouging to contact my office immediately, so we can hold these swindlers accountable," James said.

New York State’s price gouging law (General Business Law §396-r) prohibits merchants from taking unfair advantage of consumers by selling goods or services for an “unconscionably excessive” price during an “abnormal disruption of the market” or a declared state of emergency. This excessive price would be represented by a gross disparity between the price of the product immediately prior to and after such an occurrence. The price gouging law covers New York State vendors, retailers, and suppliers, and includes essential goods and services — such as food, water, gasoline, generators, batteries, flashlights, hotel lodging, and transportation services. Contract services for storm-related damage, both during and after a natural disaster, are covered by the state’s price gouging law as well.

The state of emergency was declared Friday in Cayuga, Chautauqua, Cortland, Dutchess, Erie, Essex, Hamilton, Herkimer, Montgomery, Oneida, Saratoga, and Warren counties.

Consumers should protect themselves when hiring contractors to perform storm-related services by considering the following tips:

• Shop around — Get at least three estimates from reputable contractors that include specific information about the materials and services to be provided for the job.
• Get it in writing — Insist on a written contract that includes the price and description of the work needed.
• Don't pay unreasonable advance sums — Negotiate a payment schedule tied to the completion of specific stages of the job. Never pay the full price up front.
• Get references — Check with the Better Business Bureau, banks, suppliers, and neighbors. Always contact references provided to you.
• Know your rights — You have three days to cancel after signing a contract for home improvements. All cancellations must be in writing.

The Office of the New York State Attorney General urges any New Yorker who believes they have been the victim of price gouging to call 800-771-7755 or visit the office website to file a complaint.

Find and “Like” Hudson Valley Patches' Facebook Pages.