3M files lawsuits against ‘price-gougers’

Bloomberg

With coronavirus pandemic driving up demand for protective gear, profiteers and unscrupulous middlemen have taken advantage. Now, one of the biggest manufacturers of the products is fighting back.
3M Co. , the maker of the coveted N95 mask that drew criticism from President Donald Trump over their availability, has filed four lawsuits in the past week against alleged price-gougers in New York, California, Texas and Florida. The firms were seeking to sell 3M respirator masks to the Strategic National Stockpile, New York City government and a California medical center at prices as much as six times the normal cost — while 3M said it has not increased its prices.
“Despite 3M’s extensive efforts during Covid-19, unsavory characters continue their quests to take advantage of health care workers, first responders, and others in a time of need and trade off the fame of the 3M brand and marks,” the company said in its complaints.
In taking action, the company joins a number of states in going after firms trying to sell consumer goods at inflated prices. They have threatened fines and even jail time for anyone who jacks up prices beyond what the state has deemed appropriate. Several state attorneys general are working with online sales platforms like EBay
Inc., Amazon.com Inc. and Craigslist to shut down
resellers who are charging
obscenely high amounts.
That 3M has had to rely on trademark law to police the matter has also fuelled calls for lawmakers to do something.
“There is no federal price gouging statute,” though Congress is mulling legislation to address prices charged to consumers, businesses and governments during the pandemic,” said Gretchen Jankowski, a lawyer with Buchanan Ingersoll & Rooney in Pittsburgh.
The Maryland Attorney General’s Office has received more than 200 complaints from consumers and sent more than 100 letters to retailers suspected of price-gouging, said Raquel Coombs, director of communications for the agency.
Among the complaints are gas stations selling toilet paper for $20 for a four-pack, face masks for $70 and bottles of hand sanitizer for $11 a bottle, she said.
Elizabeth, New Jersey, officials have been going through the county’s consumer affairs office and a state procurement program to make sure offers to sell masks and other protective gear are legitimate, said Mayor Christian Bollwage.
While the city and local hospital have been able to fulfill their needs for now, “in a week or two, they’re going to be in dire straits,” Bollwage said. He joined with more than 100 mayors and county executives in a letter to the Trump administration calling for a more uniform federal supply plan.