Post-storm schemes are a concern for states affected by Hurricane Helene. Here's how to avoid becoming a victim.
- During the disaster recovery from Hurricane Helene, states must be cautious of potential scams and price gouging.
- Here's what consumers should watch for.
Residents in states affected by Hurricane Helene are being advised to be cautious of scams following the storm, particularly price gouging.
An excessive increase in prices for goods and services occurs during emergencies or disasters, resulting in price gouging.
This week, North Carolina Attorney General Josh Stein stated that his office has received an increase in complaints regarding alleged price gouging related to fuel, grocery prices, and hotel rates.
On Wednesday, Stein announced that his office had received over 100 complaints of price gouging, despite the state's anti-price gouging law being in effect since the declaration of a state of emergency.
A spokesperson did not return a call from CNBC for further comment.
Stein stated in a video accompanying the post that many stores are going above and beyond to cater to their communities.
Unfortunately, there will always be some individuals who exploit this situation and people's desperation to make a fast profit, as he stated.
An expert warns that a port strike could have severe consequences for consumers.
Attorneys general in several states, including Florida, Georgia, South Carolina, and Tennessee, have issued similar warnings about price gouging during the storm. These states have anti-price gouging statutes in place.
In a recent announcement, South Carolina Attorney General Alan Wilson stated that normal price fluctuations are not considered price gouging.
When the price of bottled water goes from $5 to $10 or a chainsaw that usually sells for $100 suddenly costs $500, it is evidently price gouging, according to Teresa Murray, director of consumer watchdog at U.S. Public Interest Research Group.
"You know it when you see it," Murray said.
During disasters, emergencies, or market disruptions, price gouging laws typically become enforced, as stated.
"Even though there's a law, people may still attempt to break it," Murray stated.
Anti-price gouging laws vary among states, with 13 states lacking such protections.
Kamala Harris is advocating for a national ban on price gouging as part of her campaign's economic plan.
Anti-price gouging laws could unintendedly harm businesses and consumers, as former President Donald Trump and other critics have pointed out.
How to watch for price gouging, other scams
According to Murray, consumers should first contact the business if they suspect price gouging and notice higher than normal prices.
"Call them out, but do it nicely," Murray advised.
If they refuse to modify, you can report it to the state attorney general, she stated.
Murray said that you don't have to buy the item, but a picture of it on the shelf with the price will suffice.
In addition to price gouging, consumers should also be cautious of other scams following Hurricane Helene.
Other schemes may emerge during disaster recovery, in addition to the ones that states are warning about.
As representatives of the Federal Emergency Management Agency, insurance companies, the Small Business Association, or law enforcement, individuals may pose.
The Georgia Attorney General Chris Carr's office advises against sharing personal or financial information with individuals to avoid imposter scams. Consumers should be cautious if they are asked to pay for services from FEMA or SBA, as these services are free.
Beware of door-to-door offers for home repair work, as well as demands for full up-front or cash payments and offers to pay insurance deductibles, residents of affected areas.
Before making repairs, homeowners should communicate with their insurance companies and verify contractors' references and Better Business Bureau complaints to prevent scams.
Before purchasing a car, it is crucial to verify its history and origin to avoid buying a flood-damaged vehicle, as explained by Murray.
Both the National Insurance Crime Bureau's VINCheck and Carfax's flood check allow consumers to verify a car's history.
As people donate money to aid recovery efforts, state attorneys general caution against charity scams.
To ensure that donations are sent to legitimate charities, donors can check websites such as Give.org or CharityNavigator.org. Additionally, they should be cautious of websites that do not end in ".org" or ".com," as well as petitions for money over the phone and crowdfunding sites that may host unverified funding campaigns.
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