The eBay online marketplace prohibits sales of US hand sanitizer lists, disinfectant wipes and surgical masks to prevent a price spike that hits desperate consumers to protect themselves and their families from coronavirus.
The decision comes after USA TODAY reported inflated prices on critical supplies on major online platforms, including eBay, which may violate pricing laws in some states.
EBay informed sellers that they could no longer post new ads for N95 and N100 masks, disinfectant wipes and hand sanitizers.
This week, Governor of California, Gavin Newsom, declared a state of emergency during which “excessive and unjustified increases” in more than 10% of basic goods and services, including medical supplies, are prohibited.
Washington State Attorney General Bob Ferguson, whose state has been hardest hit by the coronavirus outbreak, said his office was investigating the incidents and asked residents to file a complaint if they detected scams.
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Nearly three dozen states have anti-gouging laws, but they define gouging differently. Florida law prohibits the sale of “essential merchandise” at an “unreasonable price”.
The scam generally refers to an increase in the prices of goods and services to unjust levels, especially in times of crisis.
Florida Attorney General’s Office Ashley Moody Speaks To Retailers “To Help Floridians Afford Health-Related Products,” Press Secretary Kylie Mason said in a statement to the United States today.
“Our office continues to investigate complaints and will aggressively pursue any misleading marketing regarding health claims or scams during this public health emergency,” said Mason. “Manufacturers and sellers should be warned that our office will deal with any complaints that we consider admissible.”
Also this week, New York State Senator Brad Hoylman of D-Manhattan said he would introduce legislation to quell major price hikes in medical supplies during a public health crisis. Under the proposal, the Attorney General could penalize retailers, manufacturers and distributors who increase the prices of supplies by more than 10% in an emergency.
Buyers told USA TODAY that while browsing the Internet and Main Street for these essential supplies, they were slapped with astronomical price tags. Shipping costs also skyrocketed, with a buyer quoted $ 500 for the floor and $ 5,000 for the next day.
The complaints concerned third-party sellers who store the vast virtual shelves of Amazon.com, Walmart, and eBay.
In a statement, eBay said it closely monitors prices for items related to coronaviruses and is taking “important steps to quickly block or remove items from our marketplace that make false health claims.”
“We strive to ensure that anyone who sells on our platform complies with local laws and eBay policies,” the statement said.
Walmart could not be reached for comment. Amazon.com said it would monitor its platform for violations, but did not say it would ban the sale of the items.
“There is no room for price increases on Amazon,” Amazon said in a statement on Friday. “We are disappointed that bad actors are trying to artificially raise the prices of basic necessities during a global health crisis and, in keeping with our long-standing policy, have recently blocked or deleted tens of thousands of offers.”
After calling Amazon.com for price hikes, Newsom this week praised the Seattle company for taking swift action.
“Amazon immediately returned to the state of California and is working collaboratively to prosecute those who profit from customers who use their platform,” said the Governor of California during a coronavirus briefing in Sacramento. “This is the spirit we were hoping to see and we hope that other platforms will provide a similar response and responsiveness to deal with the price increases we may experience, not only in this state, but across the world. country. “
Last weekend, 67-year-old Jack Arnest was looking for N95 masks when he spotted an eBay listing for three boxes for $ 62. But when he received his order confirmation, he noticed that he was only receiving three masks.
He dialed an abbreviated number on eBay and asked for the order to be canceled, but wondered how many customers were misled by the listed photo showing an individual mask leaning against a box of 20.
“There is no return policy, so if I hadn’t canceled right away, I would have been blocked and it pissed me off. He’s a guy who takes advantage of the fact that everyone is panicking and most people are rushing to get something going fast and not reading the fine print, “Arnest, retired project manager and engineer in the construction industry in Honolulu, said in the US TODAY this week. “There is no way that a box of 20 masks should cost $ 400. It was a pretty clear example of gouging. Someone is really making a profit there. “
Economists believe that a sharp increase in prices, whether from retailers or wholesalers, is the natural response to such a sudden increase in demand and can help replenish supply.
“These higher prices reward suppliers who are ready to meet this increased demand, either from existing stocks or by rapidly increasing production,” said Michael Giberson, professor of economics at Rawls College of Business in Texas. Tech University.
His catch? Higher prices discourage consumers from hoarding masks that are essential for first responders and health care professionals or those at high risk of getting coronavirus, keeping the supplies available in the hands of those who have the most need.
But Dana Radcliffe, lecturer in business ethics at Cornell University Johnson College and adjunct professor of ethics and public policy at Syracuse University, says normal rules should be suspended in an emergency when demand exceeds the supply of basic necessities.
There is no “free and fair” market because buyers have no other option, he told USA TODAY this week.
“It is not a classic economic transaction with a willing seller and buyer,” he said. “One party has all the power because the other person is in a vulnerable situation of sometimes desperate need.”
Contributor: Kelly Tyko