Acting Attorney General Davenport Warns New Jersey Sellers Against Price Gouging as Governor Sherrill Declares State of Emergency Ahead of Major Winter Storm

TRENTON – As New Jersey prepares for a major winter storm this weekend, Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs (“Division”) are warning sellers that price gouging New Jersey’s consumers during the declared state of emergency will not be tolerated. Consumers are urged to beware of and report storm-related price gouging practices immediately to the Division.

New Jersey's price gouging law (N.J.S.A. 56:8-107 et seq.) prohibits sellers from excessively increasing prices during a declared state of emergency, or for 30 days after the termination of the state of emergency. Excessive price increases are defined as price increases that are more than 10 percent higher than the price at which merchandise was sold during the normal course of business prior to the state of emergency.

Governor Mikie Sherrill declared that New Jersey will enter a State of Emergency effective at 5 p.m. today.

"As a former prosecutor, my administration will not tolerate price gouging, and we will be vigilant during this winter storm,” said Governor Sherrill. “My Attorney General and I will have zero tolerance for those who prey on New Jerseyans during this state of emergency."

“As New Jerseyans confront an affordability crisis, we will not allow our state’s consumers to be financially exploited during a major winter storm,” said Acting Attorney General Davenport. “Any merchant that unlawfully increases prices for food, gas, hotel rooms, generators, or other necessary items or services in connection with this state of emergency will face serious consequences for their misconduct, and we stand at the ready to enforce our state’s protections against price gouging.”

"The state's price gouging laws will be strictly enforced to protect consumers from being victimized by unfair and unlawful price hikes,” said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs. “The Division will investigate and hold accountable unscrupulous merchants seeking to unfairly profit off of New Jersey residents dealing with this winter storm.”

Price-gouging violations are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses. Each individual sale of merchandise is considered a separate and distinct event.

If you believe price gouging or other disaster-related fraud is occurring, contact the Division’s Emergency Hotline at (973) 504-6240. Please leave your name, contact information, nature of the complaint, and as much information as possible about the business you are complaining about, including the business name and location. When possible, note the price of a good or service prior to the declared state of emergency and after the state of emergency has been declared. Division investigators will work to address the complaint as quickly as possible. Consumers can also submit price gouging complaints online at https://njconsumeraffairs.nj.gov/file-a-complaint/.

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