In light of the approaching Hurricane Milton, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have issued a warning to consumers about potential fraud and price gouging risks. Both agencies emphasize the importance of staying vigilant and informed to avoid falling victim to deceptive practices during natural disasters.
The DOJ and FTC encourage consumers to be particularly cautious when it comes to disaster-related charities and relief efforts. Scammers often prey on the goodwill of individuals by creating fake organizations or soliciting donations for non-existent causes. To avoid becoming a victim of charity scams, it is recommended to verify the legitimacy of any organization before making a donation. Consumers can research the charity online, check its credentials with watchdog organizations, and be wary of high-pressure tactics or requests for cash payments.
In addition to charity scams, price gouging is another concern highlighted by the DOJ and FTC. Price gouging occurs when retailers significantly increase the prices of essential goods and services following a disaster, taking advantage of consumers’ urgent needs. To combat price gouging, consumers are advised to be aware of the typical prices of goods in their area and report any instances of price hikes that seem unjustified. States often have laws in place to prevent price gouging, and consumers should familiarize themselves with these regulations to protect themselves during emergencies.
Furthermore, the FTC warns consumers to be cautious of deceptive marketing practices related to disaster preparedness products. Some companies may make false claims about the effectiveness or necessity of their products in emergency situations, leading consumers to purchase items that are not as useful as advertised. To avoid falling for misleading marketing, consumers should research products before making a purchase, read reviews from reputable sources, and be skeptical of exaggerated claims.
Overall, the joint warning from the DOJ and FTC serves as a reminder for consumers to remain vigilant and informed during times of crisis. By staying alert to potential fraud and price gouging risks, individuals can better protect themselves and their communities from exploitation. Taking proactive steps to verify charities, monitor prices, and research products can help consumers make informed decisions and avoid falling victim to scams during Hurricane Milton and other emergencies.