8 JUNE 4, 2020 RIDGEWOOD TIMES WWW.QNS.COM
NY attorney general sues wholesaler
behind alleged Queens price gouging
BY JACOB KAYE
JKAYE@SCHNEPSMEDIA.COM
@QNS
New York State Attorney General
Letitia James is suing a wholesale
grocery company that allegedly sold
over 46,000 cans of disinfectant spray
at infl ated prices during the COVID-19
crisis.
Quality King Distributors and
its CEO Glenn Nussdorf, have been
charged with illegally increasing
the company’s prices for Lysol spray,
which it sold to neighborhood grocery
and discount stores in New York, including
60 stores in Queens.
Prior to the pandemic, Quality King,
a family-owned company founded in
1961 in Queens, sold 19-ounce cans
of Lysol for about $4.25, according
to the attorney general. During the
pandemic, the wholesaler sold Lysol
for as high as $9.15 a can and engaged
in over 430 transactions in which
they charged an infl ated price, James
claims.
“Quality King’s profi teering during
this time of crisis is appalling,” James
said. “Instead of ensuring New Yorkers
could protect themselves from this virus
and stop the spread, Quality King
chose to prey on a global pandemic to
line its own pockets. I won’t hesitate to
New York State Attorney General Letitia James
REUTERS/Lucas Jackson/File Photo
take action against any company that
tries to cheat New Yorkers during this
crisis and beyond.”
The lawsuit alleges that by increasing
the price, Quality King’s consumers
passed the charge onto New Yorkers,
who ended up paying as much as
$16.99 for Lysol cans at local grocers.
“Throughout the pandemic, costs
to keep the supply chain open have
materially increased in many ways
including the costs of implementing
protective measures to preserve the
health and safety of Quality King’s
employees,” said Pat Beh Werblin,
a spokesperson for the company.
“Therefore, we were disappointed to
hear that the New York state attorney
general was filing suit under the
state’s vague price gouging statute
without taking into consideration the
many challenges to our business.”
“We strongly disagree with the
attorney general’s claims and we
look forward to vigorously contesting
these claims in court,” Werblin
added.
James fi rst learned of the alleged
price gouging aft er receiving complaints
from consumers about local
grocers’ high prices.
According to James, despite Quality
King’s price increase, their suppliers’
price remained flat, around $3.54
per can. During the pandemic, the
company was able to boost its profi t
margin on the Lysol cans to about 95
percent, James alleges.
The attorney general’s lawsuit
against Quality King was filed in
New York State Supreme Court for
New York County. James is suing for
a permanent injunction barring the
company and Nussdorf from continuing
to charge infl ated prices for
pandemic supplies.
The lawsuit also calls for the company
to give restitution to customers
who bought their products, pay a civil
penalty and to return the profi ts Quality
King gained while charging the
alleged infl ated prices.
Queens assemblywoman’s bill cracking down on
pandemic price gouging passes in state Legislature
BY BILL PARRY
BPARRY@SCHNEPSMEDIA.COM
@QNS
As the New York state Legislature went back into
session aft er a six-week pause amid the COVID-
19 outbreak, one of its fi rst orders of business
was to pass Assemblywoman Nily Rozic’s legislation
that cracks down on “virus profi teers” who engage in
pandemic price gouging.
The bill empowers Attorney General Letitia James
to enforce anti-price gouging law against those ripping
off hospitals and the government.
“The COVID-19 pandemic has exposed fl aws in the
state price gouging statute and this legislation will go
a long way to ensure that New Yorkers have access to
the products and care required without paying excessive
and unreasonable prices,” Rozic said. “While we
continue to work to contain the spread of disease, we
must protect consumers when they are particularly
vulnerable. This legislation would ensure that no one
can prey on consumers’ fears and cause widespread
panic during a health crisis.”
If signed into law, the bill would expand the Attorney
General’s Offi ce ability to crack down on price
gouging. The AG would have increased fl exibility to
identify goods and services where the price gouging
laws should apply.
The bill also increases the maximum civil penalty
for price gouging to $25,000 per violation. Manhattan
state Senator Brad Hoylman carried the measure in
the upper chamber.
“Virus profi teers and scam artists tried to rip off New
Yorkers, selling medical supplies at sky-high prices to
desperate hospitals and local governments,” Hoylman
said. “It’s unconscionable that someone would use the
COVID-19 crisis as a way to make a quick buck.”
In April, New York State paid up to 20 times the normal
price for medical supplies like gloves and masks.
Since the state of emergency began, the attorney
general’s offi ce has received at least 5,750 consumer
complaints of price gouging during the coronavirus
public health crisis.
“It is vitally important that the state has all the
necessary tools to protect New Yorkers against those
seeking to take advantage in this pandemic,” James
said. “This common-sense measure will enable my
offi ce to better protect consumers, small businesses,
health care providers, and even the state from price
gouging. Over the last three months, we have received
over 5,500 price gouging complaints related to the
COVID-19, which is why we are focused on protecting
all New Yorkers now and in the future.”
Eric Linzer, president and CEO of the New York
Assemblywoman Nily Rozic’s bill that would
crackdown on virus profiteers passes in the
legislature. QNS/File
Health Plan Association, said the measure is an important
tool to deter entities from exploiting the public
health crisis for profi t so that health care can remain
aff ordable for consumers and employers.
“We appreciate the leadership of Assemblywoman
Rozic on this issue,” Linzer said. “It is vital that consumers
are able to access the care they need without being
faced with excessive price increases in the midst of a
pandemic.”
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