(WWJ) -- As the number of price gouging complaints continues to rise in Michigan, Attorney General Dana Nessel has issued another cease and desist order to protect consumers from high prices amid the coronavirus (COVID-19) pandemic.
Nessel's office said Wednesday it issued a Notice of Intended Action (NIA) letter to a Hillsdale resident to cease and desist reported price gouging practices of selling face masks online. The person was selling face masks, a high-demand product amid the outbreak, on eBay.
This was the first reported case of price gouging online.
On Tuesday, Nessel's office sent a letter to home improvement retailer Menards after receiving 18 consumer complaints that the store was selling face masks, bleach and other products at unfairly high prices.
Her office has also issued an NIA letter to A.M. Cleaning and Supplies, directing the store to cease and desist price-gouging practices. Additionally, the attorney general has contacted several business owners seeking more information if they wished to avoid further investigation or legal action by Nessel's office.
Officials say the number of price gouging complaints has skyrocketed amid the pandemic, with 572 complaints as of late Tuesday night.
The Attorney General's Consumer Protection team has been gathering the complaints online and through its phone lines at 877-765-8388. Nessel personally staffed the hotline Tuesday night along with other intake workers.
Hours for the phone lines have been extended to keep up with demand and will be open from noon to 5 p.m. over the weekend.
"Our primary focus is consumer protection and ensuring that Michiganders have access to the goods they need at reasonable prices," Nessel said in a statement. "We are not looking to shut down companies or financially jeopardize any business owner with fines, but when proprietors are not following the laws, we will take swift legal action to protect the pocketbooks of residents in this state. I can assure you that anyone trying to illegally profit off this public health emergency will be held accountable."
Under the Michigan Consumer Protection Act, a business found to be price-gouging could face legal action, and be required to pay damages to consumers and civil penalties of up to $25,000 for knowing and persistent violations – if the store fails to comply with the Attorney General's cease and desist order.
Gov. Gretchen Whitmer signed an executive order Sunday making specified price gouging behaviors criminal misdemeanors, which can be prosecuted on top of civil action under the Michigan Consumer Protection Act.
Some of the products consumers have referenced in recent price gouging complaints include toilet paper, bottled water, meat, milk and cleaning products like hand sanitizer, disinfectant wipes, rubber gloves, bleach, etc.
More recent complaints have included reports of businesses breaking up bulk packages of products and selling items individually, and stores selling products they don't generally offer – all at reportedly high prices, according to Nessel's office. Some products that were allegedly being resold at marked-up prices still had sticker tags or labels from the business where it was originally offered.
>>> Coronavirus In Michigan: What You Need To Know On Wed., March 18
This is a rapidly evolving situation. Stay tuned to WWJ Newsradio 950 where we will remain live, local and committed to bringing you the latest information during this outbreak. >>LISTEN LIVE!
