Photo courtesy of “Sarah” via Flickr
Price gouging is illegal. In the early days of the pandemic, some Bronxites had complained of the cost of thermometers, hand sanitizer and other hygiene products, but in recent months, with more and more reports of supply chain and delivery issues, price gouging appears to have become more widespread.
On Wednesday, The New York Post reported that inflation was spiking as prices surged 6.2 percent, the most in over 30 years. It was reported that the Labor Department’s Consumer Price Index, which measures a basket of goods and services as well as energy and food costs, jumped 6.2 percent in October from a year earlier.
As previously reported, New Yorkers can report sudden and unexpected increases in consumer goods by calling the consumer hotline toll free at 800-697-1220. This line is available seven days a week from 8:30 a.m. to 8:30 p.m. for consumers.
In August 2020, as reported, New York Attorney General Letitia James, who recently announced she is running for governor, filed a lawsuit against Hillandale Farms, one of the country’s largest producers and wholesale distributors of eggs, for illegally gouging the prices of eggs during the coronavirus pandemic.
In March and April 2020, it was alleged that Hillandale gouged the prices of more than four million cartons of eggs sold to major grocery store chains, U.S. military facilities, and wholesale food distributors throughout the state, charging New York customers up to four times the pre-pandemic price for one carton of eggs.
Hillandale Farms released a statement in response to the attorney general’s lawsuit announcement, at the time, saying. “Hillandale Farms unequivocally denies the allegations that it gouged the prices charged for eggs during the COVID-19 pandemic.”
The statement continued, “We are a family-owned and operated business that has been selling eggs since the late 1950s. As one of the larger egg producers in the country, we – including our more than 1,500 employees – take great pride in the quality of our products and the integrity of our operations. We were shocked and dismayed to learn of the New York Attorney General’s lawsuit.”
In April, 2021, as reported by Businesswire, Hillandale Farms announced it had settled the case, committing to donate 100,000 dozen eggs to New York food banks as part of the negotiated agreement with the Attorney General’s Office. The state’s case against Hillandale was dismissed with prejudice.
A Hillandale representatives said at the time, “Although it is important to note that the approach to pricing commodity eggs in New York using third-party data provided by Urner Barry has remained consistent for decades, the resolution of this matter reflects Hillandale Farms’ deep concern about the communities we serve. We welcomed the opportunity to take steps to benefit New York’s most vulnerable families and support ongoing hunger relief in the state.”
The statement continued, “As we have done for generations, we will continue to focus on producing quality eggs, operating with honesty and integrity, and maintaining the highest standards for our team, customers and animals.”
New York residents who are concerned over price gouging can also file an online complaint with the Department of State Consumer Protection Division. Alberto Roldan who previously worked at the Department of Consumer Affairs but now works for NYCHA, highlighted last year that stores are prohibited from charging more than 10 percent of what they were charging for products before the crisis.
Roldan also confirmed that the Attorney General’s office was tracking food overpricing incidents and noted that small businesses were sometimes unaware of their rights in this regard. Business owners can increase prices but they have to be comparable with what they, themselves, are being charged by suppliers. If there are any suppliers who are squeezing small businesses, this should be reported.
The Office of the New York State Attorney General urges any New Yorker who believes they have been the victim of price gouging to file a complaint online here or call 800-771-7755.
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Welcome to the Norwood News, a bi-weekly community newspaper that primarily serves the northwest Bronx communities of Norwood, Bedford Park, Fordham and University Heights. Through our Breaking Bronx blog, we focus on news and information for those neighborhoods, but aim to cover as much Bronx-related news as possible. Founded in 1988 by Mosholu Preservation Corporation, a not-for-profit affiliate of Montefiore Medical Center, the Norwood News began as a monthly and grew to a bi-weekly in 1994. In September 2003 the paper expanded to cover University Heights and now covers all the neighborhoods of Community District 7. The Norwood News exists to foster communication among citizens and organizations and to be a tool for neighborhood development efforts. The Norwood News runs the Bronx Youth Journalism Heard, a journalism training program for Bronx high school students. As you navigate this website, please let us know if you discover any glitches or if you have any suggestions. We’d love to hear from you. You can send e-mails to norwoodnews@norwoodnews.org or call us anytime (718) 324-4998.
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