2008 PRESS RELEASES
May 1, 2008
DON’T LET DISASTER STRIKE TWICE – WATCH OUT FOR SCAMS
Contact: Marion Horsley, 804.225.3820
When a natural disaster occurs, people are powerless to prevent it. However, in the aftermath, consumers can help keep disaster from striking twice by watching out for scam artists who want to take advantage of the calamitous situation.
The Virginia Department of Agriculture and Consumer Services’ (VDACS) Office of Consumer Affairs (OCA) offers some tips to prevent fraudulent activities that may occur in the wake of destructive calamities such as Virginia’s recent tornados.
One area that offers a lot of potential for post-disaster fraud is charitable solicitations. OCA advises consumers to take time to consider carefully any charitable solicitation on behalf of tornado victims. Don’t automatically say yes when asked to give money or buy an item in the name of helping those affected by these disasters.
Solicitors for fraudulent groups can scam consumers in a number of ways. They can use the destruction and displacement caused by the tornados to elicit sympathy and contributions. They may use organization names that sound like those of respectable groups to mislead potential donors. They may also put pressure on consumers to make a quick contribution before they have the time to research the claims about the charity.
When asked to make a charitable contribution, OCA advises consumers to make sure they know the charity’s history, purpose and reputation and also make sure the name of the charity is the one known and respected and not just a sound-alike. Be sure to find out how the charity plans to assist the victims and never give in to a solicitor’s pressure or a hard-luck tale. Don’t hesitate to ask for additional information about the charity but be wary if the solicitor is not willing to provide it.
According to OCA, it is also important to listen for telephone solicitors to disclose, as required by law, the name of the company which employs them and that they are paid to solicit. Verify that the charity has registered with OCA as state law requires by calling 804-786-2042 in the Richmond area or 800-552-9963 in the rest of the state, or by visiting the Consumer Assistance Portal at www.vdacs.virginia.gov/consumers, under Charitable Search. When solicited in person, request identification before making a monetary contribution.
In the wake of such significant devastation, consumers may find materials, good and services available at significantly increased prices. According to the Virginia Post-Disaster Anti-Price Gouging Act (§ 59.1-525), during the time period of a disaster as declared by the Governor or the President, it is unlawful for any supplier to sell, lease, or license, or to offer to sell, lease, or license, any necessary goods and services at an unconscionable price within the area for which the state of emergency is declared.
The basic test for determining if a price is unconscionable is whether the post-disaster price charged by a supplier for a necessary good or service grossly exceeds the price charged for the same or similar goods or services either by the same supplier, or within the same trade area, during the ten (10) days immediately prior to the disaster.
Necessary goods and services are those for which consumer demand increases or is likely to increase as a consequence of the disaster, such as water, ice, food, cleaning and medical supplies, fuel, building materials, housing, storage services and transportation. Actual sales at the increased price are not required for the increase to be considered unconscionable.
Violations of the Anti-Price Gouging Act are enforceable through the Virginia Consumer Protection Act. However, enforcement and legal actions can be brought only by an authorized government agency. Individuals cannot sue other individuals or businesses under the Anti-Price Gouging Act.
If you believe you have been the victim of price gouging, you may file a formal complaint with the Office of Consumer Affairs. The appropriate form is available by clicking here, or by calling the Consumer Protection Hotline at 804.786.2042 in the Richmond area or 800.552.9963 in other areas of the state.