The state placed a price freeze on all commodities on Maui as the island copes with the aftereffects of major fires in Lahaina, Upcountry and Pulehu/Kihei.
The price freeze, which was put in place as a result of emergency proclamations on Wednesday, will remain in effect until Aug. 31 unless terminated or superseded by a separate emergency proclamation, the state Office of Consumer Protection said Thursday. It does not extend beyond Maui.
During the declared emergency, the price freeze means that commodities must be sold at pre-emergency price levels.
Under state law, commodities broadly mean any good or service necessary for the health, safety and welfare of the people within the designated emergency area. This generally includes materials, merchandise, supplies, equipment or resources, and more specifically includes those things consumers will likely need to cope with the emergency, such as food, water, ice, gasoline, cooking fuel, batteries, generators, medical supplies and construction materials.
Each item sold at a price above the pre-emergency prices during the declared emergency constitutes a violation of state law. Merchants could face legal action and be ordered to pay restitution in order to reimburse consumers, in addition to mandatory fines and penalties of between $500 and $10,000 per violation, a news release from OCP said.
“The Office of Consumer Protection will investigate complaints and prosecute any offenders to the fullest extent of the law,” said Executive Director Mana Moriarty. “It is important for consumers to alert the Office of Consumer Protection about any businesses selling commodities at increased prices during this emergency period.”
Some merchants may avoid fines and penalties if they can show the violation of the price limitation was unintentional, that prices were promptly rolled back to the appropriate level upon learning of the price caps and that a restitution program was implemented to return any excessive payments to consumers. Corrective measures that fall short of all of these requirements, however, will not save merchants from being ordered to pay mandatory fines and penalties, the news release said.
The public is encouraged to report to OCP any instances of potential price gouging in any instance when a consumer has paid for goods or services purchased on Maui at a price that was increased after Aug. 9 while the price freeze was in effect.
OCP can be contacted by email at OCP@dcca.hawaii.gov and through the Consumer Resource Center at (808) 587-4272.
Complaints can also be filed online at OCP’s portal at consumercomplaint.hawaii.gov/.
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