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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

Requesting Disaster Assistance After Hurricane Irene

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Yesterday, President Obama issued a Major Disaster Declaration for damage resulting from Hurricane Irene in New Jersey, which makes many New Jersey residents eligible for a number of Federal disaster relief programs. The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) announced that federal aid has been made available to certain people in need of disaster assistance in the State of New Jersey to supplement state and local recovery efforts in the area affected by Hurricane Irene beginning on August 27, 2011, and continuing.

What Does Disaster Recovery Assistance Entail?

According to the FEMA website, there area number of federal disaster recovery assistance programs that can be made available (as needed and warranted) under the major disaster declaration, which was issued by President Obama for the State of New Jersey.

Here is a summary of those programs – taken directly from the FEMA website:

Assistance for Affected Individuals and Families Can Include as Required:

  • Rental payments for temporary housing for those whose homes are unlivable.  Initial assistance may be provided for two months for homeowners and renters.  Assistance may be extended if requested after the initial period based on a review of individual applicant requirements.  (Source: FEMA funded and administered.)
  • Grants for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.  (Source: FEMA funded and administered.)
  • Grants to replace personal property and help meet medical, dental, funeral, transportation and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.   (Source: FEMA funded at 75 percent of total eligible costs; 25 percent funded by the state.)
  • Unemployment payments up to 26 weeks from the date of the disaster declaration for workers who temporarily lost jobs because of the disaster and who do not qualify for state benefits, such as self-employed individuals.  (Source: FEMA funded; state administered.)
  • Low-interest loans to cover residential losses not fully compensated by insurance.  Loans available up to $200,000 for primary residence; $40,000 for personal property, including renter losses.  Loans available up to $2 million for business property losses not fully compensated by insurance.  (Source: U.S. Small Business Administration.)
  • Loans up to $2 million for small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes that have suffered disaster-related cash flow problems and need funds for working capital to recover from the disaster’s adverse economic impact.  This loan in combination with a property loss loan cannot exceed a total of $2 million. (Source: U.S. Small Business Administration.)
  • Loans up to $500,000 for farmers, ranchers and aquaculture operators to cover production and property losses, excluding primary residence.  (Source: Farm Service Agency, U.S. Dept. of Agriculture.)
  • Other relief programs: Crisis counseling for those traumatized by the disaster; income tax assistance for filing casualty losses; advisory assistance for legal, veterans benefits and social security matters.

As you can see, your potential benefits would include SBA disaster loans, disaster unemployment assistance, and even procuring a disaster loan from the Farm Service Agency. Many home contents insurance policies will not cover damages from hurricanes and other natural disasters, so these grants, disaster unemployment assistance payments, and loans can be a huge help to those in need! Especially when without them, you may have to resort to using pay day loans or other high-interest lending to make ends meet while you recover from disaster.

Who Is Eligible For Disaster Assistance?

According to the FEMA website, the President’s action makes federal funding available to affected individuals in Bergen, Essex, Morris, Passaic, and Somerset counties. As anyone living in New Jersey can tell, the list of eligible counties is incomplete, when compared to the damage done.

However, William L. Vogel who has been named as the Federal Coordinating Officer for Federal recovery operations in the affected area, stated that, “damage surveys are continuing in other areas, and additional counties may be designated for assistance after the assessments are fully completed.”

I would suggest that those who are in other counties check the FEMA website daily to see if their area has been added. It may help to keep in touch with your local elected officials as well, so they can advise you regarding your current options, and so that they are better equipped to speak out on your behalf.

***Update: President Obama just visited New Jersey and extended disaster assistance to the following counties: Hunterdon, Middlesex, Monmouth, Sussex, Warren, Atlantic, Camden, Cape May, Cumberland, Salem, Gloucester ***

Burlington, Hudson, Mercer, Ocean and Union counties still have a chance to be declared eligible by the time full damage assessments are concluded.

How To Apply For Disaster Assistance:

The Federal Government has set up a website that allows people to apply online for disaster recovery assistance: http://www.disasterassistance.gov

Instead of forcing you to bounce back and forth between the various Federal agencies involved, this website consolidates the application process across several Federal agencies, including FEMA and the Small Business Administration.

Ultimately, you will have to complete less forms than normal, the application process will move faster, and you will also be able to check the progress of your application online.

If you want to apply by phone rather than the Internet, you can call 1-800-621-FEMA (1-800-621-3362). Disaster assistance applicants, who have a speech disability or hearing loss and use TTY, should call 1-800-462-7585 directly; for those who use 711 or Video Relay Service (VRS), call 1-800-621-3362.

Be prepared to provide basic information about yourself (name, permanent address, phone number), insurance coverage and any other information in order to expedite the process.

Other Things To Consider

By checking the FEMA website, you can see what other states/counties are eligible for this type of aid. Also, be aware that anyone who suspects price gouging during this time is encourage to report it to the state (just follow the instructions in the link provided).

Although it would have been impossible for any individual to stop the flood waters from overtaking them, by following the information including in this hurricane preparedness guide, you can give your family the best chance to be healthy and safe during and after a natural disaster.

Even if you have not suffered damage yourself, or you do not live in New Jersey, please pass this information along to anyone who might be in the need of disaster assistance.

photo courtesy of Buzz Feed

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

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