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Don’t Be A Victim Of Price Gouging

price gouging
(Image: WRDW)

With Hurricane Matthew moving closer to South Florida, authorities are on high alert for cases of price gouging across the state. On Monday, when Florida Gov. Rick Scott declared a state of emergency the state’s price gouging law kicked in.

What is price gouging?  (Source: legaldictionary.net/price-gouging)

Price gouging is a term that refers to the practice of raising the price of goods, services, or commodities, to an unreasonable or unfair level. Such an increase in price is often a result of a sudden increase of demand and shortage of goods, such as in the event of a natural disaster or other crisis, and it is illegal in most jurisdictions.

It’s horrible to fathom that in times of crisis and emergency, fellow citizens will try to profit on their neighbors

price gouging
The Law

The law prohibits extreme increases in the price of essential commodities like:

  • food
  • ice
  • water
  • gas
  • lumber

There are price gouging laws on the local and state level making many of these acts illegal. If you believe a business is price gouging, you are urged to call the following hotlines to file a complaint:

  • Florida Attorney General’s Office at 1-866-9-NO-SCAM
  • Miami-Dade State Attorney’s Office at 305-547-3300
  • Florida Department of Agricultural and Consumer Services Help Line 800-HELP-FLA (800-435-7352)

You are urged to keep receipts and other proof to back up claims.

You can find more information on these websites:

Broward County

Miami/Dade

Florida Attorney General

Protect Yourself from Home and Roof Repair Ripoffs

Be a smart consumer by being prepared when you get unsolicited offers for a home inspection to uncover damage and/or present a claim to your insurer.  Take a look at these tips from the Better Business Bureau to guide you to a decision that may help prevent a home repair scammer to profit from your loss.

Don’t Give In to Pressure

Most would probably agree that it’s a bad idea to sign a contract with a stranger at your front door, but it happens quite frequently. The key to the scammer’s success is his ability to apply subtle pressures by using tactics and phrases like these:

Tactic 1: Don’t be left behind!

 “Look at our signs. The entire neighborhood has suffered damage. Better sign a contract now before the cost of materials increase.” 

Tactic 2: Don’t worry about the cost!

 “We deal with your insurance company all of the time. They accept our estimates,” or “I left the amounts blank on our contract. We can fill them in after we settle with your insurance company. You’re only responsible for your deductible.”

Tactic 3: Get in on the deal!

“We’re a national company and better pricing on materials than the local contractors.” 

Important!  Don’t let a stranger on your roof or into your home.  Also, be aware that scammers may try to damage the roof while “inspecting” it or distract the homeowner while an accomplice ransacks the home.

Do Your Homework

  • When you are getting bids, be thorough and take the time to check on details.
  • The bids should contain identical specifications for the scope of repairs, material and labor.
  • Check their references, licenses and insurance
  • Do not sign a contract you don’t understand, and don’t leave any spaces blank
  • Be sure to include an agreement in the contract regarding schedule and method of payment. The BBB recommends the rule of thirds:
    • Pay one third at the start of the project
    • Pay one third when work is 50 percent completed
    • Pay the final third upon completion
  • Make the contractor responsible for securing permits
  • Ask the contractor to provide a lien waiver when the work is completed

Assignment of Benefits  

Lastly, don’t unknowingly sign forms that include “Assignment of Benefits” agreements.  By signing this agreement, you are transferring your rights and allowing the contractor to directly collect YOUR claim settlement from the insurance company.   Unfortunately, this can also often result in a homeowner losing control of the claim process and incurring inflated bills beyond what is covered by the policy.

For example, with your signature, an unscrupulous water extraction or roof repairing company could move in quickly to start repairs without first providing your insurance company the opportunity to inspect the damage and/or collect evidence.  The vendor then presents the insurance company with an inflated bill.  The insurance company makes every attempt to negotiate the settlement …..however, the contractor could place a lien on the home….and contractor liens in Florida can be enforced by foreclosure. 

For more information visit the Insurance Institute for Business & Home Safety.

[vc_message message_box_style=”3d” message_box_color=”turquoise”]By Al Sunshine, SouthFloridaReporter.com, Consumer Investigator Oct. 6, 2016[/vc_message]
Al Sunshine is a South Florida-based Broadcast and Digital Journalist whose career has spanned more than 40 years at the local and national levels. His award-winning investigations have triggered more than a dozen state and local consumer protection laws and his work’s been cited in Congressional Testimony before the U-S House of Representatives. He is best known for his “Shame On You” features for CBS Miami which sought to expose businesses, agencies and individuals defrauding or deceiving consumers, as well as endangering the safety and welfare of the general public. In 2013 Al retired from CBS Miami to set up his own Digital News Business, “Sunshine News, LLC” and Al continues to blog for the Radio, Television, Digital News Association, sponsors of the prestigious Edward R. Murrow Awards”. An avid environmentalist, Al is one of the founding members of the “Miami Pine Rocklands Coalition”. The Florida Non-Profit is fighting to save and restore the last 2% of Pine Rocklands found only in South Florida and nowhere else in the continental United States. Al was recently elected its President.