LANSING, MI (WKZO AM/FM) — Attorney General Dana Nessel is announcing that four cease-and-desist letters have been sent to online sellers accused of price-gouging during the COVID-19 outbreak.
Nessel reports that these four sellers operate through Amazon and were being investigated after credible reports of price-gouging were received.
The sellers are likely in violation of the Michigan Consumer Protection Act for:
- Charging the consumer a price that is grossly in excess of the price at which similar property or services are sold.
- Causing coercion and duress as the result of the time and nature of a sales presentation.
The sellers are operating under the following names: Dealz N-KY, Happy Small Hands, HotDealz73, and ZXL Distribution Group.
When a seller in a different state is involved, the Attorney General can employ the Michigan Consumer Protection Act to vindicate the rights of Michiganders who have been exploited. And, when the seller is in Michigan, the Attorney General can proceed to protect consumers everywhere.
The Dealz N-KY notice was issued to an out-of-state seller who sold to a Michigan consumer at a grossly excessive price. That consumer filed a complaint with the Attorney General’s office, and supplied documentation evidencing her allegations. The other three notices were issued to third-party sellers located in Michigan.
Though Amazon already suspended these sellers, the Attorney General will seek to ensure these sellers do not retain profits from their alleged wrongdoing, and to prevent them from simply moving their misconduct to other online marketplaces.
The cases against these four sellers can be viewed below:
- Dealz N-KY: This storefront operator sold a two-pack of hand sanitizer for $89, plus shipping. The same product typically sells for $8.85 at other online retailers. Click here to see the Attorney General’s letter to Dealz N-KY.
- Happy Small Hands: On Feb. 21, the storefront sold a 10-pack of N95 masks for $38 plus $21.95 for shipping. The next day, the same product was sold for $42 plus $46.95 in shipping. The 30-day average sales price for all Amazon sales of that product as of Jan. 19 was $13.67. Additionally, the seller sold a two-pack of N95 masks for $25.95 plus $52.95 shipping. That usually sells for $5.13 on Amazon. The storefront also charged $45.99 plus $9.95 for shipping for a three-pack of hand sanitizer. That product usually sells for $13.63. Click here to see the Attorney General’s letter to Happy Small Hands.
- HotDealz73: Sold a 20-pack of N95 Drywall Sand Respirators for $59.75. The average price on Amazon for that product was $19.92. The seller also charged nearly $400 plus $31.58 in shipping for a 12-pack of 8-ounce bottles of hand sanitizer. That product generally sells for $39.72. Click here to see the Attorney General’s letter to HotDealz73.
- ZXL Distribution: Sold a 10-pack of N95 masks for $59.95 (normally sells for $13.67), and a 40-pack for $229 ($83.44). Among other offenses, the storefront also charged a consumer $119 for a six-pack of 32-ounce bottles of disinfectant spray, which typically sell for about $41. Click here to see the Attorney General’s letter to ZXL Distribution.
The sellers have 10 days to respond to the Attorney General’s office, otherwise additional action could include the launch of a formal investigation through court subpoenas. The sellers could also agree to an assurance of voluntary compliance.
“As we continue to work through this COVID-19 pandemic together, my office will keep protecting consumers from price-gougers – and that includes online retailers,” Nessel said. “This public health emergency is not an excuse for businesses to take advantage of people and profit from fear, and those who try will be held accountable.”
To date, Nessel’s office has received 3,096 complaints of COVID-19-related price-gouging. That includes 1,491 complaints submitted online through the Attorney General’s website and 1,605 taken by phone through the Consumer Protection tip line.
Consumers can file a complaint online or by calling the Consumer Protection tip line, 877-765-8388. Hours of operation are between 8:30 a.m. and 4:30 p.m. Monday through Friday.
