Community Corner

N.J. Officials Warn of Possible Scams After Irene

There have been nearly 50 reports of price gouging since state of emergency declared.

The New Jersey Division of Consumer Affairs is warning residents to beware of shady businesses and vendors showing up in the wake of Hurricane Irene.

Neal Buccino, a spokesman with the division, said there already have been 46 reports of price gouging since the storm—on items including bottled water, gasoline and hotel rooms.

He said there's been no reports of home repair or charity scams yet.

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Buccino said his division has investigated 23 of the cases and none had broken the law, but the investigation is continuing, "While they have found some high prices … the cases we've fully investigated have turned out not to be violations."

New Jersey law forbids merchants from raising prices by more than 10 percent during a state of emergency and 30 days after the declaration is rescinded. Gov. Chris Christie declared an emergency last Thursday.

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Daniel Jovic, a spokesman for Allstate New Jersey Insurance Company, said the agency is aware of two incidents so far involving price gouging.

The first is in Essex County where a contractor charged a 79-year-old woman $6,500 to pump eight inches of water from her basement. Jovic said the woman also gave $1,000 up front for the job. The second is in Middlesex County, where a man received a $7,000 quote for water removal. Jovic said the man did not go through with the job.

"These are jobs that should have taken a couple hundred dollars," said Jovic.

Buccino would not elaborate on the businesses being investigated, their location or say whether they are chain or locally owned stores.

The spokesman said, though, the department is being cautious and trying to inform residents that there could be scammers, "We are sending teams of investigators to every New Jersey county (Thursday) and (Friday)."

Jovic said Allstate does not investigate consumer fraud issues, but gives advice to individuals who may be victims.

Arlene Lester, a spokeswoman for State Farm in New Jersey, said the insurance agency received no reports of price gouging or scams to date.


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