Biden Administration Warns of Price Gouging Risks Ahead of Hurricane Milton’s Landfall

According to NBC News, the Biden administration emphasized that during times of crisis, certain individuals and businesses might attempt to exploit vulnerable communities for financial gain. U.S. Attorney Ronald C. Gathe Jr. of Louisiana stated, “Wrongdoers are looking to exploit opportunities and victims of natural disasters for their own personal gain,” highlighting the urgency of the situation.

Federal Trade Commission Chair Lina Khan echoed these concerns, revealing that the agency had already begun receiving disturbing reports of price gouging for essential goods, such as gasoline, groceries, and hotel rooms—items critical for those evacuating or preparing for the storm. “We’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way,” Khan said per NBC News.

By midday Wednesday, nearly a quarter of gas stations across Florida were reported to be out of fuel, as tracked by Patrick De Haan, a prominent oil and gas analyst. This fuel shortage further exacerbated concerns about inflated pricing and unfair practices as residents scrambled to make last-minute preparations.

Manish Kumar, deputy assistant attorney general for the Justice Department’s Antitrust Division, warned businesses to refrain from exploiting the hurricane as an opportunity for illegal profit. “Companies are on notice: do not use the hurricane as an excuse to exploit people through illegal behavior,” he said.

Most states, including Florida, have laws that protect against price gouging during declared states of emergency. These laws are designed to shield consumers from exorbitant price hikes on necessities like food, water, and fuel. In response to the storm, several major airlines and retailers have preemptively frozen their prices. Home Depot’s Southern Division President Kelly Mayhall told CNBC, “Once we have any emergency situation, all of our prices are freeze[d].”

Vice President Kamala Harris also issued a stern warning to companies, making it clear that the administration will not tolerate price gouging or fraudulent practices during a time of crisis. “Let us all be clear: Americans impacted by a crisis should never be ripped off,” Harris said. “Those evacuating before Hurricane Milton or recovering from Hurricane Helene should not be subject to illegal price gouging or fraud – at the pump, airport, or hotel counter.”

Harris further underscored the administration’s commitment to holding bad actors accountable. “Any company or individual that tries to exploit Americans in an emergency should know that the Administration is monitoring for allegations of fraud and price gouging and will hold those taking advantage of the situation accountable,” she reiterated in a statement.

Per NBC News, the administration also cautioned consumers to be on the lookout for potential scams, including fraudulent charities seeking donations for disaster victims and schemes designed to steal personal information or money.

As of Wednesday afternoon, Hurricane Milton had strengthened to a Category 4 storm while making its way through the Gulf of Mexico, with meteorologists predicting landfall along Florida’s Gulf Coast between 10 p.m. and 2 a.m. ET. The National Hurricane Center urged residents to complete any necessary evacuations and precautions by early Wednesday, warning that the window for safety measures was rapidly closing.

With the hurricane season in full swing and Milton set to cause significant impact, federal agencies have made it clear that protecting Americans from fraud and price manipulation is a top priority.

Source: NBC News