The Biden administration issued warnings on Wednesday from multiple departments, reminding consumers to be wary of businesses and individuals attempting to engage in fraud, price gouging, or collusion to profit from natural disasters. These warnings come as Hurricane Milton is expected to make landfall in western Florida with a Category 5 hurricane force on Wednesday night.
The White House, the U.S. Department of Justice, and the Federal Trade Commission (FTC) all issued warnings on Wednesday, indicating that the federal government will hold accountable those who seek to deceive consumers by exploiting hurricane-related disasters.
Vice President Kamala Harris stated in a released statement from the White House, “Let’s be clear: no one should ever defraud Americans in crisis.”
Reflecting on their achievements in combating price fraud, the Democratic presidential candidate emphasized, “Those who evacuated before Hurricane Milton struck, or those recovering from Hurricane Helene, should not fall victim to illegal price gouging or fraud—whether at gas stations, airports, or hotel desks. Any company or individual trying to exploit Americans in emergencies should be aware that this administration is monitoring allegations of fraud and price gouging and will hold those opportunists accountable.”
The Department of Justice and the Federal Trade Commission also issued statements, noting that both agencies, along with the Consumer Financial Protection Bureau (CFPB), are monitoring instances of fraudsters exploiting the current hurricane crisis for price gouging and fraud.
FTC Chair Lina Khan stated, “As Americans seek safety from natural disasters, we are troubled by reports of individuals inflating prices of essential goods—ranging from hotels to groceries and gas.”
Manish Kumar, Deputy Assistant Attorney General in charge of the antitrust division at the Department of Justice, warned in a statement, “Companies, beware: do not exploit people through illegal acts under the guise of hurricanes. The antitrust division and its enforcement partners will swiftly take action to root out anticompetitive behavior and hold wrongdoers accountable using all available tools.”
These statements were issued as Hurricane Milton, a Category 5 hurricane, approached the Gulf Coast of Florida. Local residents, following government orders to evacuate, are rushing to fuel their vehicles and purchase basic necessities, with reports of opportunistic price hikes surfacing.
These federal agencies, in their statements, expressed their collaboration with state and local governments, as well as other federal agencies, to collectively combat price gouging practices.
They also listed the types of fraud that may occur during natural disasters, cautioning people not to fall prey to scams.