As North Carolina navigates a difficult economic time there is a surge in reports of price gouging. When a disaster strikes and supplies are running short some sellers respond by raising prices. The demand is high for needed supplies and during this time people may be willing to pay higher prices for a low priced good. The practice is called price gouging.
Complaints about suspected price gouging happening in Bladen County are almost daily. On Saturday, March 28, we received a complaint about Fresh Foods IGA on Poplar Street in Elizabethtown selling five disposable face masks packaged in their ”Our Family” plastic zip bags for $10.00 per package.
Another complaint came in about the price of their toilet paper. Fresh Foods had nine Charmin Mega Rolls for $14.99 on April 2, 2020, while Walmart had 24 Meg Rolls for $12.97 offered on their website.
BladenOnline.com reached out to Fresh Foods. Jeet Brahmbhatt, Vice President of Fresh Foods responded. He explained the store had more invested in some of the products than what some customers may realize. He also stated the store has been donating needed supplies to the essential workers as well.
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Price gouging reports are not anything new during times of emergency in North Carolina and across the nation. Josh Stein, North Carolina Attorney General, reported his office received more than 400 reports of alleged price gouging in March alone. A large majority Bladen County reports are alleging excessive price increases on paper products, groceries, and hand sanitizer.
BladenOnline.com staff members reached out to Quintin McGee with the Bladen County District Attorney’s office. He explained price gouging complaints should be submitted to the North Carolina State Attorney General, Josh Stein. The quickest way to submit a complaint about price gouging is to complete the form found here: https://ncdoj.gov/file-a-complaint/price-gouging/.
The complaint form was indeed the most efficient way to report concerns about gouging because it prompts the consumer to list all of the relevant information and it’s filtered to the appropriate people immediately, according to officials.
Stein did a virtual town hall on March 19 addressing price gouging concerns. Here’s the video: https://www.youtube.com/watch?v=kdpNXkERwb8.
The debate of whether or not this practice is a justified response to supply and demand continues as well.
According to Harvard Business School, businesses tasked with adjusting pricing strategies in response to economic, social, and legal conditions, creating a plan that’s best for both their company and its consumers, requires an intimate knowledge of business, the economy, and the situation at hand.
Not only do they need to consider the moral implications of their decisions, but know the fundamentals of economics to understand how the market works and the intricacies of the different factors at play.
Reference: https://online.hbs.edu/blog/post/supply-and-demand-or-price-gouging-an-ongoing-debate
Related Article:
https://bladencounty.org/fresh-foods-iga-in-elizabethtown-accused-of-price-gouging/
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