It appears we now have a Federal price gouging law.
Bloomberg has the story:
Accused New York Mask Hoarder Is First Charged Under Defense Act
By Patricia Hurtado
"In response to the Covid-19 pandemic, President Donald Trump on March 18 issued an executive order making it illegal to hoard medical supplies and devices which the U.S. has designated as scarce or sell them at excessive prices.
...
"Singh sold three-ply disposable face masks for $1 each, after having bought them for 7 cents -- a markup of about 1,328% -- Donoghue said, citing records seized from the store. Bulk sales were made to organizations serving vulnerable senior citizens and children battling the virus, according to the records.
"Singh “saw the devastating Covid-19 pandemic as an opportunity to make illegal profits on needed personal protective equipment,” said Craig Carpenito, the U.S. Attorney for the Eastern District of New Jersey who also heads the U.S. Department of Justice’s Covid-19 Hoarding and Price Gouging Task Force.
"U.S. postal inspectors seized 23 shipping pallets containing more than 100,000 face masks, 10,000 surgical gowns, 2,500 full-body isolation suits and more than 500,000 pairs of disposable gloves at Singh’s warehouse."
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And many states have had price gouging laws on the books for a long time. Here's a story from the WSJ:
Texas Attorney General Accuses Largest U.S. Egg Producer of Price-Gouging
Lawsuit alleges Cal-Maine Foods sold eggs at over 300% of their normal cost in coronavirus pandemic By Rebecca Davis O’Brien
"The lawsuit shows the concern among law-enforcement officials and consumer-protection authorities over price-gouging on essential goods during the pandemic.
...
"Before the pandemic, between December 2019 and February 2020, Cal-Maine’s prices in Texas were around $1.02 for generic eggs and $1.89 for specialty eggs, according to the lawsuit.
"According to the lawsuit, as of 2015, Cal-Maine operated more than 90% of the largest egg-processing facilities in Texas. Nationally, Cal-Maine is the largest producer and marketer of shell eggs in the U.S., with a 19% overall market share, the lawsuit alleges, citing company statements.
"According to the lawsuit, Cal-Maine’s price jumps weren’t justified because its egg supply wasn’t affected—the company has said its facilities have been fully operational, with no disruptions to delivery or its supply chain. “During this pandemic, neither production costs nor contractual obligations forced Cal-Maine to charge exorbitant prices,” the lawsuit alleges.
"The lawsuit also alleges that Cal-Maine has misled the public about its egg prices, citing an April entry on the company website stating that “wholesale shell egg market prices…are outside of our control.” In fact, the attorney general alleges, there is no egg-market exchange, and Cal-Maine can exert control over prices."
Bloomberg has the story:
Accused New York Mask Hoarder Is First Charged Under Defense Act
By Patricia Hurtado
"In response to the Covid-19 pandemic, President Donald Trump on March 18 issued an executive order making it illegal to hoard medical supplies and devices which the U.S. has designated as scarce or sell them at excessive prices.
...
"Singh sold three-ply disposable face masks for $1 each, after having bought them for 7 cents -- a markup of about 1,328% -- Donoghue said, citing records seized from the store. Bulk sales were made to organizations serving vulnerable senior citizens and children battling the virus, according to the records.
"Singh “saw the devastating Covid-19 pandemic as an opportunity to make illegal profits on needed personal protective equipment,” said Craig Carpenito, the U.S. Attorney for the Eastern District of New Jersey who also heads the U.S. Department of Justice’s Covid-19 Hoarding and Price Gouging Task Force.
"U.S. postal inspectors seized 23 shipping pallets containing more than 100,000 face masks, 10,000 surgical gowns, 2,500 full-body isolation suits and more than 500,000 pairs of disposable gloves at Singh’s warehouse."
**********
And many states have had price gouging laws on the books for a long time. Here's a story from the WSJ:
Texas Attorney General Accuses Largest U.S. Egg Producer of Price-Gouging
Lawsuit alleges Cal-Maine Foods sold eggs at over 300% of their normal cost in coronavirus pandemic By Rebecca Davis O’Brien
"The lawsuit shows the concern among law-enforcement officials and consumer-protection authorities over price-gouging on essential goods during the pandemic.
...
"Before the pandemic, between December 2019 and February 2020, Cal-Maine’s prices in Texas were around $1.02 for generic eggs and $1.89 for specialty eggs, according to the lawsuit.
"According to the lawsuit, as of 2015, Cal-Maine operated more than 90% of the largest egg-processing facilities in Texas. Nationally, Cal-Maine is the largest producer and marketer of shell eggs in the U.S., with a 19% overall market share, the lawsuit alleges, citing company statements.
"According to the lawsuit, Cal-Maine’s price jumps weren’t justified because its egg supply wasn’t affected—the company has said its facilities have been fully operational, with no disruptions to delivery or its supply chain. “During this pandemic, neither production costs nor contractual obligations forced Cal-Maine to charge exorbitant prices,” the lawsuit alleges.
"The lawsuit also alleges that Cal-Maine has misled the public about its egg prices, citing an April entry on the company website stating that “wholesale shell egg market prices…are outside of our control.” In fact, the attorney general alleges, there is no egg-market exchange, and Cal-Maine can exert control over prices."
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