In the brisk wake of the impending Hurricane Milton, U.S. federal authorities, notably the Department of Justice (DOJ) and the Federal Trade Commission (FTC), issue stern warnings for consumers to brace themselves not only against the physical storm but also against a wave of potential fraud and price gouging.
This stern alert comes amidst a rising concern over the proliferating incidents of deceit and opportunistic business practices that typically arise in the aftermath of disasters or emergencies. Be it natural calamities or global health crises, scam artists leverage these dire situations to implement illegal schemes that exploit the desperation, vulnerability, and urgency of the affected population.
Such schemes cut across various sectors but are mostly rampant in the commodity market, where the laws of supply and demand are egregiously manipulated under the guise of an ’emergency.’ Price gouging, a form of economic exploitation, becomes evident as businesses impulsively hike prices for goods and services that are in high demand due to the emergency. Essential items such as food, water, gasoline, and basic supply kit components may suddenly become disproportionately expensive, putting further strain on the already distressed consumers.
The FTC, responsible for ensuring the protection of consumers and maintenance of the competition integrity, is on high alert for such unlawful practices. They have urged citizens to promptly report any incidents of markedly inflated prices. However, price gouging is not the only menace lurking in the shadow of emergencies.
Fraud, in its various manifestations, poses another significant threat to consumers. Disasters, like the impending Hurricane Milton, often give birth to a surge of fraudulent charity scams. Unscrupulous individuals set up counterfeit organizations or websites, posing as legitimate charitable entities to solicit donations from well-meaning consumers.
In addition, insurance fraud can take center stage, with fraudsters convincing victims that they need unnecessary repairs, charging them for services not rendered, or inflating the cost of services provided. Scammers might also employ high-pressure tactics or offer ‘too good to be true’ deals to ensnare unsuspecting consumers.
To this end, the DOJ, the prime federal law enforcement institution, reinforces efforts to safeguard consumers. It explicitly encourages citizens to research before donating to charities or contracting for home repairs and to be cautious when providing personal or financial information.
Furthermore, both the FTC and DOJ galvanize the importance of unity and collective responsibility in times of crises. Consumers are urged not merely to be aware and alert for their own protection but also to report any suspicious activity. This will facilitate the unmasking
