LANSING (WWJ) - Four businesses in Michigan are under investigation after the state received dozens of price-gouging complaints from consumers.
Attorney General Dana Nessel says her office has now received 75 price-gouging complaints connected to the coronavirus outbreak, and four businesses have been contacted to gather more information on their consumer-reported price-gouging.
The Attorney General's office last week contacted a west Michigan retailer that was reportedly selling individual face masks packaged in Ziploc bags – for $10 a piece. A discussion with the business owner took place, followed by a letter requiring the business to provide specific information to avoid formal action or investigation
Another business, A.M. Cleaning & Supplies on Washtenaw Ave. in Ann Arbor, was allegedly using its Twitter account to advertise the sale of three different sized bottles of Purell at prices of $60, $40, and $20. After several complaints, the store allegedly re-posted the same Purell bottles at prices of $7.50, $5 and $2.50. The business was issued a letter Wednesday, and investigators are awaiting a response.
Two grocery stores were mailed letters Friday: India Grocers, on Halsted Road in Farmington Hills, for alleged price-gouging on groceries, and Dearborn Fresh Supermarket, on Colson Road in Dearborn, for alleged price-gouging on hand sanitizers
Nessel says consumers should not be held to the whims of a business looking to profit from fear, especially in the midst of a public health emergency.
"I will not hesitate to take legal action against those businesses that are not complying with the law," she said in a statement. Face masks, hand sanitizers, cleaning supplies and bottled water are some of the products that have reportedly been on store shelves for exceptionally high prices – likely in violation of the Michigan Consumer Protection Act.
Nessel says consumers who suspect cases of price gouging should report it to her office immediately at 877-765-8388.
The Attorney General's office is actively looking at other potential targets, but is not identifying those businesses at this time.
Retailers may be in violation of the Michigan Consumer Protection Act if they are:
- Charging the consumer a price that is grossly in excess of the price at which similar property or services are sold
- Causing coercion and duress as the result of the time and nature of a sales presentation.
