Consumers should be cautious of fraud and price gouging during Hurricane Milton, according to warnings from the Justice Department and FTC.

• The Biden administration is cautioning consumers against fraud and price hikes as Hurricane Milton prepares to make landfall in the U.S.
• Nearly a quarter of gas stations in Florida were out of gas by noon on Wednesday, according to Patrick De Haan, an oil and gas analyst who monitors pump supply.

The Biden administration cautioned consumers and businesses about the increased risk of fraud, price gouging, and collusion that often occurs during natural disasters as Hurricane Milton neared landfall in western Florida on Wednesday.

U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana stated that wrongdoers are seeking to take advantage of opportunities and victims of natural disasters for their own personal benefit.

Lina Khan, chair of the Federal Trade Commission, stated that the FTC is receiving concerning reports of price hikes for essentials that are critical for individuals to escape danger, including hotels, groceries, and gas.

Nearly a quarter of gas stations in Florida were out of gas by noon ET on Wednesday, according to Patrick De Haan, an oil and gas analyst who monitors pump supply.

The Justice Department's Antitrust Division deputy assistant attorney general, Manish Kumar, warned companies not to use the hurricane as a justification for engaging in illegal behavior and exploiting people.

Laws aimed at preventing price gouging exist in many states, often linked to emergency declarations.

In recent days, several major airlines and retailers have informed CNBC that they have kept prices stable prior to the storm.

Kelly Mayhall, president of Home Depot's Southern division, stated on CNBC Wednesday that in the event of an emergency, all of their prices would be frozen.

The Biden administration has warned consumers to be cautious during the ongoing hurricane season, as there are several issues to be aware of, such as fraudulent charities, scammers seeking personal information or money, and excessive pricing for essentials.

The Vice President stated on Wednesday that any individual or company attempting to exploit Americans during an emergency will be monitored by the Administration for fraud and price gouging, and those taking advantage of the situation will be held accountable.

On Wednesday afternoon, Hurricane Milton was traveling through the Gulf of Mexico as a Category 4 storm and was predicted to strike the western Florida Gulf Coast between 10 p.m. and 2 a.m. ET, as reported by NBC News meteorologists.

Early on Wednesday, the National Hurricane Center advised that evacuations and other safety measures should have been taken.

In September, Hurricane Helen caused widespread devastation across the South, killing more than 230 people. Meanwhile, North Carolina Attorney General Josh Stein has issued a warning about price gouging in his state.

This is a developing story, please check back for updates.