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Personal Finance From a Biblical Perspective

New Jersey Price Gouging Laws Are In Effect Thanks To Hurricane Sandy

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According to a press release by the New Jersey Office Of The Attorney General (NJOEM), Attorney General Jeffrey S. Chiesa and Governor Chris Christie warned merchants about New Jersey price gouging laws during the State of Emergency declared in reaction to the devastation caused by Hurricane Sandy.

Which Merchants Are Typically Guilty Of Price Gouging?

When a natural disaster – such as a hurricane or earthquake – strikes, a number of retailers will try to take advantage of the victims. However, there are some which seem to be more likely than others. Among the most common offenders are gas retailers, grocers, and taxis.

If you have to visit one of these types of retailers either during or 30 days after the termination of a State of Emergency, be on the lookout for price gouging.

Price Gouging New Jersey

What Exactly Is Considered Price Gouging?

Price gouging is when a retailer unnecessarily, and callously increases their prices during an time of great fear and panic and/or in an emergency situation. This is why you need to engage in hurricane preparedness in advance!

In order to prevent the evaluation of price increases from being subjective, the state has set up precise guidelines in this matter:

The law deems price increases excessive if they are more than 10 percent higher than the price at which a good or service was sold in the usual course of business prior to the State of Emergency; or, if additional costs are imposed by suppliers or certain logistical concerns during the State of Emergency, the increase is more than 10 percent of the amount of markup from cost, compared with the markup ordinarily applied.

What this means is that a retailer is allowed to raise their prices by up to 10 percent during a time of emergency, without it being considered price gouging. However, once those price increases are more than 10 percent higher than the prices before the State of Emergency, that retailer is breaking the law!

If the retailer had to increase their prices more than 10% due to the prices of their supplies increasing, or due to other “logistical concerns” because of the State of Emergency, they will also take into account.

Basically, if it now costs 50% more to ship food to that area, then the grocery stores most likely won’t be punished for raising their prices by more than 10%. We as consumers have to keep in mind the increased costs and labor efforts of the various suppliers and merchants before filing a claim of price gouging.

What Are The Penalties For Price Gouging?

According to the NJOAG website:

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.

Based on these numbers and the fact that each individual sale is treated as a separate violation of the price gouging laws, I can’t see why anyone would want to take part in this practice. The profits that one would gain by engaging in price gouging can’t compare to the penalties that they would face if caught.

Governor Christie had this to say:

During emergencies, New Jerseyans should look out for each other – not seek to take advantage of each other. The State Division of Consumer Affairs is looking closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties.

A.G. Chiesa also issued his own warning:

Retailers should know we will conduct a thorough investigation, including an audit of the merchant’s receipts dating back to before the State of Emergency, to examine each and every complaint… Anyone violating the law will find the penalties they face, far outweigh the profits of taking unfair advantage of their fellow New Jerseyans during a time of great need.

How To Report Price Gouging

If you believe that a business has cheated or scammed you by engaging in price gouging, then you can file a complaint with the State Division of Consumer Affairs by visiting its website, or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

photo credit: Freedigitalphotos.net

Did Cablevision Really Sell My Data?

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Some of you may know that I moved over the summer. On my other site (Fat Guy, Skinny Wallet), where I write about my struggle to lose weight and pay off debt, I wrote about how we were able to save money moving, and save money on car insurance. I usually try to keep my business and personal life separate, which is why I didn’t write anything about my move on this site. However, there is one thing that I would like to share!

I Think Cablevision Sold My Data!!!

Now, I am not naive to the fact that companies collect information on their customers and sells this information to various companies and agencies. However, it was really bad in my case.

So…right after I moved, I set up a mailbox for my business at a local UPS Store. This way, I don’t have to have my home address connected to my business. Every company that I deal with on behalf of my business is given the mailbox address, rather than my personal one.

There were only two companies that had both the name of my business and my home address. The bank that I use for my business checking account, and Cablevision. I changed my address with my bank relatively quickly after moving, and things were fine. It wasn’t until I set up Internet and phone service with Cablevision, that I started getting a bunch of junk mail!

Even though I never had this problem before with my bank (they weren’t responsible for any junk mail at my old apartment, from what I can tell), there was still the smallest chance that they were the ones who sold my data this time. The other junk mail that I have received in the past was the result of signing up for a tax preparation mailing list, and also a couple of publications to which I subscribed. That mail is easy to spot because it’s being sent to my old address, and comes with those big, obnoxious, yellow mail forwarding labels!

Maybe I’m Wrong?

Recently, my wife had to call Cablevision about an unrelated matter, and she brought up the fact that they sold our information. Of course they denied it and stated that they never sell customer information.

Could I be wrong about them? Did my bank finally become desperate and decide to start selling customer data? Maybe a few marketing geniuses were able to figure out my home address on their own? I was sure that it was Cablevision, but they just said that it’s against their policy to sell data! For the first time since I was about 2 or 3 years old, I could actually be wrong about something! 😉

Then my mind snapped back into reality! Khaleef, what do you think is more likely? You actually being wrong about something, or someone from a big corporation lying about (or ignorant of) their shady business practices? [I can just imagine the grief my wife is going to give me when she reads this! 😎 ]

The proof came soon after. I received a piece of mail at my home address, but made out to my business. When I opened the envelope, I found an advertisement that had my name, business name, home address, and home phone number printed!

This is the phone number that Cablevision assigned to me when I took on their service. No one knows this number. I don’t even know this number!!! Neither my wife nor I have ever given this number out to anyone. The only way some random company would know it, is if Cablevision sold it to them, or to a huge database!

Why Do I Care?

I am sure that many of you are wondering what the big deal really is? Many companies buy and sell addresses, phone numbers, and other customer data all the time. In fact, when I went to the Financial Blogger Conference, one of the presentations spoke in part about how purchasing email lists can be a great growth strategy!

I have two major problems with what Cablevision did!

First, I don’t remember signing any agreement that would give them the right to sell my data to anyone. There was no privacy policy included on the single form that we had to sign. I didn’t see any information regarding this online either (although, it’s probably hidden or implied somewhere). If they are going to continue with this practice, it should be out in the open, and clearly disclosed to the customers (in plain English)!

What if I was living with friends, and didn’t want to have their information tied to my business in any way? There are many bloggers who stay anonymous because of their professional life. If I was a part of the contingent workforce, owning a business, or even having a blog about finance could disqualify me! Of course, it wasn’t that serious in my case, but it never really is, until something actually happens – which is why many people have to look into professional indemnity insurance early on!

I’ve talked about protecting yourself from identity theft while using Facebook and Twitter, but this is worse, since there isn’t anything you can do about it!

Second, if they are making money by adding my company’s information to other databases, I want my cut! If there is any value in my information, then I should be the one getting paid for it. Let me sign up for the various databases and get paid for doing so.

photo by Danilo Rizzuti

What About You?

  1. Have you ever discovered that a company was selling your data?
  2. Do you think they should have a right to do this?
  3. Am I the only one that thinks we should have a choice in the matter…and who wants a cut if I agree?
  4. Have you ever purchased customer/client information or a mailing list? If so, how did you market yourself afterwards?

New Jersey Activates Price Gouging Laws In Reaction To Hurricane Irene

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According to a press release by the New Jersey Office of Emergency Management (NJOEM), Attorney General Paula T. Dow and the New Jersey Division of Consumer Affairs warned merchants about price gouging laws during the State of Emergency declared in anticipation of Hurricane Irene.

***Click Here To See The Ruling Regarding Hurricane Sandy***

What Merchants Are Typically Found Price Gouging?

When a natural disaster – such as a hurricane – strikes, a number of retailers will try to take advantage of the victims. Among the most common offenders are gas retailers, grocers, and taxis.

If you have to visit one of these types of retailers either during or 30 days after the termination of a State of Emergency, be on the lookout for price gouging.

What Exactly Is Considered Price Gouging?

Price gouging is when a retailer unnecessarily, and callously increases their prices during an time of great fear and panic and/or in an emergency situation. This is why you need to engage in hurricane preparedness in advance!

In order to prevent the evaluation of price increases from being subjective, the state has set up precise guidelines in this matter:

The law deems price increases excessive if they are more than 10 percent higher than the price at which a good or service was sold in the usual course of business prior to the State of Emergency; or, if additional costs are imposed by suppliers or certain logistical concerns during the State of Emergency, the increase is more than 10 percent of the amount of markup from cost, compared with the markup ordinarily applied.

What this means is that a retailer is allowed to raise their prices by up to 10 percent during a time of emergency, without it being considered price gouging. However, once those price increases are more than 10 percent higher than the prices before the State of Emergency, that retailer is breaking the law!

If the retailer had to increase their prices more than 10% due to the prices of their supplies increasing, or due to other “logistical concerns” because of the State of Emergency, they will also take into account.

Basically, if it now costs 50% more to ship food to that area, then the grocery stores most likely won’t be punished for raising their prices by more than 10%.

What Are The Penalties For Price Gouging?

According to the NJOEM website:

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.

Based on these numbers and the fact that each individual sale is treated as a separate violation of the price gouging laws, I can’t see why anyone would want to take part in this practice. The profits that one would gain by engaging in price gouging can’t compare to the penalties that they would face if caught.

How To Report Price Gouging

If you believe that a business has cheated or scammed you by engaging in price gouging, then you can file a complaint with the State Division of Consumer Affairs by visiting its website, or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

photo by Magic Robot

Black Friday 2010: Shoppers Trampled, Items Stolen, and Obama in Stitches!

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photo courtesy of Huffington Post

It never fails! Every year we get to see the worst in humanity during Black Friday!

People will try to cut in line in front of hundreds of shoppers. There will be fights over parking spaces, places in line, and discounted items. People will steal items right out of shoppers’ cars once they fill up their cars and head back for more. People will even trample over their fellow man just to get 40% off of a DVD player!

Couldn’t even make it out of the parking lot!

According to a report on CNN, three women were at a Best Buy on Black Friday, and had $1,000 in merchandise stolen from their car!

After they made their purchases, they put them in the car and went to JC Penney. A few minutes later, they returned, and the goods were gone.

What makes it worse (for the women, at least), is that they were camped out at the store since Wednesday! So that means they spent their Thanksgiving outside in a Best Buy parking lot! Here they are being interviewed:

Serious about her toy!

Maybe they should have had this woman with them! According to CNN, she tried to cut in front of a few hundred shoppers who were already waiting in line!

Okay, I can imagine someone managing to cut in front of a person who was blabbing to their spouse. Maybe they could even get in front of a second person who is busy reading a text message. But, how in the world do you get the guts to cut in front of several hundred people?!?!?!?!

Of course she was confronted but a lot of tired, cold, and angry shoppers! At this point most people would have given up and went to the back of the line, but not her. She decides to threaten to go get her gun and shoot anyone who had a problem with her cutting in line!

Black Friday Line Cutter

photo courtesy of CNN

WHAT IS WRONG WITH PEOPLE?!?!?! You can’t make this stuff up! Here is what she had to say for herself:

Everybody was cutting in line… I’m not a violent person, but police charged me with disorderly conduct.

…I just wanted to get my daughter the toy that she wanted for Christmas, which probably won’t be there when I go today.

So she just went to jail and all she can think about is going back to the store where she threatened to shoot people? This is why I stay home every year!

Should trampling become an Olympic sport?

In what is becoming a common theme, shoppers were trampled inside a Target as the doors opened early Friday morning. Here is the video from inside Target:

I’ll trade you this Playstation for that car!

Also, in a different shopping plaza at least 10 shoppers had their cars towed away while they shopped at Best Buy!

These shoppers decided to park in a lot belonging to a T-Mobile store. Apparently it will cost these shoppers $335 to get their car out of impound!

“We’re going to have to return our gifts that we bought on Black Friday just to get the car from tow,” said Lavorn Ford, who had purchased a Playstation 3 for his son. “It’s frustrating because you get up early in the morning to get your kids stuff for Christmas and then this stuff happens.”

Ummm…does he not realize that he did something wrong? 🙄

According to the store manager, Brian Fisher, “Our lot was full by 4 and then again by 6, so we would have opened up our business and not had any spots.”

I really don’t see anything wrong with the manager’s actions in this case. Maybe he could have asked the Best Buy manager to make an announcement to warn the customers first – especially if his lot wasn’t clearly marked with a sign explaining the consequences.

Raise my taxes and I’ll bust you in the mouth!

The last piece of Black Friday 2010 news that I found to be odd is what happened to President Obama! In the picture above, he can be seen holding tissue against his bloody mouth on his way to receive 12 stitches in his upper lip! No, this didn’t happen because someone was frustrated with how Obama is running this country into the ground.

According to this Huffington Post story, he was elbowed in the mouth by Rey Decerega, Director of Programs for the Congressional Hispanic Caucus Institute. It happened during a game of basketball.

Maybe he should have went to Best Buy instead!

Okay, that’s enough of the Black Friday craziness for me. I wonder what Cyber Monday 2010 will look like!

Verizon to Send Refunds to 15 million Customers!

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Verizon Wireless announced that it will issue refunds to about 15 million customers! According to Mary Coyne, Deputy General Counsel, Verizon Wireless, the refunds will be issued over the next two months:

In October and November, we are notifying about 15 million customers, through their regular bill messages, that we are applying credits to their accounts due to mistaken past data charges. We will mail former customers refund checks.

The excess charges stem from data sessions that were not initiated by the customer. In these cases, built-in software on the phone accessed the internet or the mobile network. Here is Coyne’s explanation:

As we reviewed customer accounts, we discovered that over the past several years approximately 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate.

The majority of the data sessions involved minor data exchanges caused by software built into their phones; others included accessing certain web links, which should not have incurred charges.

Verizon stated that they have corrected the problem, and that these charges will not be assessed in the future.

Despite Verizon’s efforts to make things right, the F.C.C. will investigate forcing Verizon to pay penalties for taking so long to reimburse customers  (this goes back across the last few years).

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photo credit: cafemama

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