4 THE QUEENS COURIER • JUNE 4, 2020 FOR BREAKING NEWS VISIT WWW.QNS.COM
сoronavirus
Attorney general sues wholesaler
behind alleged Queens price gouging
Rozic bill cracking down on pandemic price gouging passes in 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.
Th e bill empowers Attorney General
Letitia James to enforce anti-price gouging
law against those ripping off hospitals
and the government.
“Th e 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. Th is 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. Th e AG
would have increased fl exibility to identify
goods and services where the price
gouging laws should apply.
Th e 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. “Th is 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
QNS fi le photo
all New Yorkers now and in the
future.”
Eric Linzer, president and CEO of the
New York 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.”
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
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.
“Th roughout 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.
“Th erefore, we
were disappointed
to hear that the New York state attorney
general was fi ling 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 fl at, 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.
Th e attorney general’s lawsuit against
Quality King was fi led 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.
Th e 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.
REUTERS/Lucas Jackson/File Photo
/WWW.QNS.COM
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