Michigan AG sends cease and desist letters for online price gouging

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Posted at 4:20 PM, Apr 07, 2020
and last updated 2020-04-07 16:22:17-04

LANSING (WXYZ) — Michigan Attorney General Dana Nessel is cracking down on online sellers that are price gouging customers during the coronavirus pandemic.

On Tuesday, the AG's office announced that four online retailers selling items on Amazon were sent letter ordering them to stop taking advantage of consumers after there were credible reports made regarding price-gouging in violation of the Michigan Consumer Protection Act (MCPA).

The online companies that received letters are Dealz N-KY, Happy Small Hands, HotDealz73, and ZXL Distribution Group.

“As we continue to work through this COVID-19 pandemic together, my office will keep protecting consumers from price-gougers – and that includes online retailers,” Nessel said. “This public health emergency is not an excuse for businesses to take advantage of people and profit from fear, and those who try will be held accountable.”

The AG's office added that to reign in on price-gouging, even for out-of-state sellers, the attorney general will employ the Michigan Consumer Protection Act to protect Michigan residents that have been exploited, a release states.

One of the Amazon online sellers sent a cease and desist notice is Dealz N-KY. The company sold to a Michigan resident and a complaint was made. The other three online sellers are located in Michigan.

So far the AG's office has received 3,096 complaints of COVID-19-related price-gouging. Many of the complaints are on the price-gouging of face masks, hand sanitizer and various food items.

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