Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 18, 2014
The Firm
201-896-4100 info@sh-law.comThe 2014 hurricane season has been kind to New Jersey so far. However, some New Jersey Businesses are still feeling the repercussions of their conduct in the wake of Superstorm Sandy. So far, the state has recovered a total of $1,080,702.64 in civil penalties, consumer restitution, and other fees from entities accused of having violated the New Jersey price gouging statute.
Pursuant to N.J.S.A. 56:8-109, businesses are prohibited from imposing excessive price increases during a declared state of emergency for merchandise used as a direct result of an emergency or used to “protect the life, health, safety, or comfort of persons or their property.” The law defines excessive price increases as more than 10 percent above the price at which merchandise was sold during the normal course of business immediately prior to the state of emergency.
New Jersey businesses may raise prices in cases where their supplier imposes higher costs or the merchants otherwise incur additional costs of providing goods or services during the state of emergency. Even then, however, the markup above cost may not exceed 10 percent above the markup from cost applied in the usual course of business prior to the state of emergency. Businesses face fines up to $10,000 for a first violation and up to $20,000 for subsequent violations. Notably, each sale of merchandise is considered a separate event.
In the wake of Superstorm Sandy, the New Jersey Attorney General’s Office has cracked down on businesses, particularly hotels and gas stations, that violated the State’s price gouging statute. According to a press statement by the Division of Consumer Affairs, it has filed 27 enforcement actions, of which 23 have been resolved through settlement.
Most recently, Acting Attorney General John J. Hoffman announced a settlement with Amy Hotels, LLC, d/b/a “Econo Lodge,” in Egg Harbor Township. The hotel has agreed to pay $64,543.96 to resolve allegations that it engaged in 545 instances of unlawful price gouging, which purportedly included raising room rates from $79.00 to $199.99 per night during the state of emergency. An additional $25,000 in civil penalties is suspended but will become payable if the hotel fails to abide by the terms of the settlement within one year.
Early September marks the height of the Atlantic hurricane season, so we may not yet be out of the woods. Should disaster strike, we remind local businesses that trying to capitalize on others’ misfortune may not only harm your reputation, but also your bottom line.
If you have any questions about New Jersey’s price gouging statute or would like to discuss how a disaster may impact your business, please contact me or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!