Government

Attorney General Abbott Warns Against Exploiting Hurricane Rita Victims During Recovery Efforts

Investigators worked through weekend to avert exploitation of evacuees; will aggressively pursue price gouging, other unlawful acts targeting affected Texans

From the Office of Greg Abbott, Attorney General of Texas

September 27, 2005

AUSTIN, Sep. 26, 2005 – Texas Attorney General Greg Abbott today warned about the continued threat of price gouging as his office received hundreds of reports over the weekend about businesses that tried to exploit displaced Texans who fled coastal areas in the wake of Hurricane Rita.

“In the coming days millions will go back to their homes and their lives. As they do so, I will not tolerate unscrupulous businesses and con men who prey upon those who have already faced a tremendous ordeal,” Attorney General Abbott said. “Unfortunately, price gouging and various types of scams often arise amid natural disasters, and my office will aggressively pursue those who engage in these activities.”

More than 500 complaints

More than 500 complaints alleging price gouging have been filed with the Attorney General since Wednesday, when the bulk of the evacuation began from the Texas Gulf Coast region. Consumers have been reporting inflated prices such as $199 per day for a rental car, $250 nightly motel stays, $30 for a case of bottled water, and $20 for a dozen eggs. The Office of the Attorney General is also investigating dozens of reports of gasoline allegedly priced between $5 and $15 a gallon.

One consumer reported a price-gouging incident to the Attorney General’s hotline when a motel wanted to charge $90 for a room advertised at $29.99. According to the consumer, a follow-up call by Attorney General investigators to confirm the allegation resulted in management immediately honoring the advertised price and issuing refunds to other guests who had been charged exorbitant rates.

Attorney General Abbott urged Texans to continue filing complaints of price gouging. Consumers can call the Consumer Protection Hotline at (800) 252-8011 or file their complaints on the Attorney General’s Web site at www.oag.state.tx.us.

Abbott urged consumers to be as specific as possible when filing complaints, providing information such as the business name, address or specific location, contact information, and the price the business advertises and actually charges for a particular item. Consumers are also encouraged to retain receipts and even take photos of the advertised prices, if possible. Digital photos can be e-mailed to the Attorney General at greg.abbott@oag.state.tx.us.

Attorney General investigators continue to follow up on complaints, contacting businesses to confirm whether price gouging has occurred. Businesses that gouge could face civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act, and an additional amount of up to $250,000 for gouging consumers 65 years of age or older.

Furthermore, in the aftermath of a storm, consumers facing cleanup and repair should be careful when selecting a building contractor. Attorney General Abbott offered the following recommendations to avoid ripoffs:

• Deal only with licensed, bonded contractors

• Be wary of “specials” and extra-cheap work

• Contact your insurance adjuster to get an estimate of any damage and cost of repair

• Do not be rushed into signing contracts and never pay up-front for promised work

• Avoid door-to-door solicitors for damage repair work

• Get the terms of warranty work in writing

• Contact friends or relatives for references

Consumers should be wary of anyone who offers unsolicited services, especially if they ask for personal information, as that could be a warning sign of possible identity theft. Consumers should not sign any documents with blank spaces to be filled out later.

In addition, Abbott noted that while disasters prompt an outpouring of generosity, they also bring scam artists and thieves who try to take advantage of that kindness. Texans wishing to give to hurricane relief should give only to charities they are already familiar with and know are legitimate. Reputable organizations do not directly solicit donations from individual consumers by telephone, e-mail or door-to-door visits. Citizens should not use links they find in unsolicited e-mails to access the Web sites of charitable organizations.