On October 9, the FTC, DOJ and CFPB warned consumers about potential fraud and price gouging during natural disasters. According to the agencies, scammers often exploit weather emergencies to take advantage of people trying to recover or donate to disaster victims.
FTC Chair Lina M. Khan highlighted reports of price gouging for essentials like hotels and groceries, and Deputy Assistant Attorney General Manish Kumar of the DOJ’s Antitrust Division warned companies against using the recent hurricane as an excuse for illegal behavior. CFPB Director Rohit Chopra condemned price gouging during natural disasters as unfair and illegal.
The FTC outlined common types of disaster-related scams, including fraudulent charities, scammers impersonating government officials or promoting non-existent businesses or investment opportunities, and price gouging for essential goods and services. To avoid scams, consumers are advised to be cautious of anyone insisting on payment by wire transfer, gift card, payment app, cryptocurrency, or cash. Officials emphasized that FEMA never requires those affected by a natural disaster to pay a fee to get disaster relief. The federal government also recommends taking measures to prevent fraud such as researching contractors, obtaining multiple estimates, and securing written contracts for repairs. Consumers can report scams to the FTC here.
