FTC, DOJ and CFPB warn consumers about potential scams after natural disasters

Orrick, Herrington & Sutcliffe LLP
Contact

Orrick, Herrington & Sutcliffe LLP

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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Orrick, Herrington & Sutcliffe LLP

Written by:

Orrick, Herrington & Sutcliffe LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Orrick, Herrington & Sutcliffe LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide