As the nation prepares for another major hurricane, federal agencies are cautioning consumers about potential scams and price gouging in the aftermath of natural disasters. The Federal Trade Commission (FTC), Department of Justice (DOJ), and Consumer Financial Protection Bureau (CFPB) have issued warnings to alert individuals about fraudulent activities that often arise during such times.
Scammers are known to exploit weather emergencies, taking advantage of those trying to recover or donate to disaster victims. Consumers who suspect they have encountered a scam can report it to the FTC at ReportFraud.ftc.gov.
FTC Chair Lina M. Khan stated, "As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way—from hotels to groceries to gas." She emphasized that no American should worry about being exploited when fleeing a hurricane and assured that the FTC, in collaboration with state enforcers, will continue efforts to prevent exploitation during crises.
Deputy Assistant Attorney General Manish Kumar from the DOJ's Antitrust Division warned companies against using hurricanes as an excuse for illegal behavior. He stated, "The Antitrust Division and its law enforcement partners will act quickly to root out anticompetitive behavior and use every tool available to hold wrongdoers accountable."
CFPB Director Rohit Chopra highlighted the issue of price gouging during natural disasters, calling it "just plain wrong" and noting that excessive price increases can be deemed unfair under the law. He affirmed that the CFPB would monitor financial companies closely during these times.
Common scams include fraudulent charities imitating legitimate organizations, scammers posing as government officials offering relief in exchange for personal information or money, and false businesses promoting non-existent services related to disaster recovery. Price gouging on essential goods is also a significant concern.
To avoid falling victim to scams after a natural disaster, consumers should be wary of anyone insisting on payment via wire transfer, gift card, payment app, cryptocurrency, or cash. FEMA does not charge fees for disaster relief; any claims otherwise are fraudulent. It is advisable not to sign insurance checks over to others and always research contractors thoroughly before agreeing on repair work.
The FTC provides resources on avoiding scams and preparing for natural disasters at consumer.ftc.gov. The CFPB offers guidance through its disaster toolkit available at consumerfinance.gov/complaint.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. They emphasize never demanding money or making threats as part of their operations. More information on consumer topics can be found at their website or by following them on social media platforms.
