- As states work to recover from Hurricane Helene, they also have to watch for risks of price gouging and other scams that may crop up during the disaster recovery.
- Here’s what consumers should watch for.
States affected by Hurricane Helene are warning residents to watch for the risks of scams in the aftermath of the storm, including price gouging.
Price gouging happens when there is an excessive increase in prices charged for goods and services, and it often happens during emergencies or disasters.
North Carolina Attorney General Josh Stein this week said his office has seen an uptick of complaints of alleged price gouging related to fuel and grocery prices and hotel rates.
In a Wednesday update, Stein said his office had fielded more than 100 price gouging complaints, he posted on social media platform X on Wednesday, despite the state’s anti-price gouging law that went into effect with the declaration of a state of emergency.
A spokesperson did not return a call from CNBC for further comment.
“Most stores are bending over backwards to serve their communities,” Stein said in a video accompanying the post.
“But unfortunately, there’s always going to be a few folks out there who take advantage of this moment and people’s desperation to make a quick buck,” he said.
More from Personal Finance:
Port strike could have ‘devastating consequences’ for consumers, expert says
With Hurricane Helene disrupting travel, here’s what fliers need to know
How to prevent hurricane damage on your home
Attorneys general in other states affected by the storm — including Florida, Georgia, South Carolina and Tennessee — have issued similar warnings. They are among the 37 states that have anti-price gouging statutes in place.
Normal price fluctuations are not price gouging, South Carolina Attorney General Alan Wilson said in a recent announcement.
But when necessities like a case of bottled water go from $5 to $10, or a chainsaw that normally sells for $100 jumps to $500, it’s “pretty obviously” price gouging, said Teresa Murray, consumer watchdog director at U.S. Public Interest Research Group.
“You know it when you see it,” Murray said.
Price gouging laws tend to kick in during states of disaster or emergency or during abnormal market disruptions, she said.
“Just because there’s a law doesn’t mean that people won’t try and violate it,” Murray said.
The terms of established price gouging protections vary from state to state. Meanwhile, 13 states do not have anti-price gouging laws.
Vice president Kamala Harris is pushing for Congress to establish a national ban on price gouging with her presidential campaign’s economic agenda.
Yet critics — including former President Donald Trump — have said anti-price gouging laws could have unintended consequences for businesses and the consumers they are intended to help, such as interfering with the supply of goods.
How to watch for price gouging, other scams
Consumers who spot higher than normal prices they suspect is price gouging should first approach the business with their concerns, according to Murray.
“Be nice about it, but call them out,” Murray said.
If they are unwilling to change, you may report it to the state attorney general, she said.
Keep in mind you do not necessarily have to buy the item; a picture of the item on the shelf with the price will work, Murray said.
Price gouging is not the only scam consumers need to watch for in the aftermath of Hurricane Helene.
States are also warning of other schemes that tend to crop up during disaster recoveries.
Individuals may pose as representatives of the Federal Emergency Management Agency, as well as insurance companies, the Small Business Association or law enforcement.
To avoid those imposter scams, the Georgia Attorney General Chris Carr’s office warns not to share personal or financial information to individuals. Because FEMA and SBA services are free, consumers should be on alert if they’re asked to pay.
Likewise, residents of affected areas should also be wary of door-to-door offers for home repair work, as well as demands for full up-front or cash payments and offers to pay their insurance deductibles.
To avoid getting scammed, homeowners should talk to their insurance companies before making repairs and check out contractors by asking for references and looking to see if they have any complaints with the Better Business Bureau.
People who are in the market to buy a car should also be sure to check a vehicle’s history and where it came from before they make the purchase, to be sure they are not buying flood-damaged property, Murray explained.
Consumers can check a car’s history through the National Insurance Crime Bureau’s VINCheck as well as Carfax’s flood check.
Meanwhile, as people look to donate money to help the recovery, state attorneys general are also warning of the risk of charity scams.
To avoid sending money to the wrong place, donors can verify a charity by visiting websites Give.org or CharityNavigator.org. Also watch for websites that do not end in “.org” or “.com,” petitions for money over the phone and crowdfunding sites that may host unverified funding campaigns.
