The federal government is warning consumers to beware of price gouging in the wake of two major hurricanes hitting the United States in less than two weeks.

Hours before Hurricane Milton is expected to make landfall in Florida Wednesday, the Justice Department, Federal Trade Commission and Consumer Financial Protection Bureau said companies may take advantage of the natural disasters to illegally increase prices.

What You Need To Know

  • The federal government is warning consumers to beware of price gouging in the wake of two major hurricanes hitting the United States in less than two weeks

  • On Wednesday, just hours before Hurricane Milton is expected to make landfall in Florida, the Justice Department, Federal Trade Commission and Consumer Financial Protection Bureau said companies may take advantage of the natural disasters to illegally increase prices

  • The three agencies said fraudulent charities often solicit donations for disaster victims using names that imitate legitimate charitable organizations

  • Vice President Kamala Harris, the Democratic presidential nominee, also issued a statement Wednesday warning consumers about price gouging during emergencies

“As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way — from hotels to groceries to gas,” Federal Trade Commission Chair Lida M. Khan said in a statement. “No American should have to worry about paying grossly inflated prices when fleeing a hurricane.”

The three agencies said scammers may charge more for the goods and services disaster victims need. They also warned of fraudulent charities that solicit donations for disaster victims using names that imitate legitimate charitable organizations.

Scammers may also impersonate government officials by saying they will provide disaster relief if an individual provides their personal information or money or promote businesses or investment opportunities that don’t exist, including services to rebuild or flood-proof homes. 

The scam warning comes as the Federal Emergency Management Agency is also working to combat misinformation about filing for disaster relief assistance.

To avoid being scammed, the agencies advise consumers to beware of companies or individuals that insist upon being paid with a wire transfer, gift card, payment app, cryptocurrency or cash. They also said to “avoid anyone who promises they can help you qualify for relief for a fee.”

The Justice Department first began coordinating with other federal agencies to prevent disaster fraud in 2005, following Hurricane Katrina. The DOJ estimates as much as $2 billion in fraudulent activities took place after the hurricane devastated New Orleans. 

The Federal Bureau of Investigation found many people, including 1,100 inmates at jails, claimed relief funds for nonexistent Hurricane Katrina victims, while some hotels charged the government for disaster victims that never stayed there. 

Vice President Kamala Harris, the Democratic presidential nominee, also issued a statement Wednesday warning consumers about price gouging during emergencies.

“Those evacuating before Hurricane Milton or recovering from Hurricane Helene should not be subject to illegal price gouging or fraud — at the pump, airport or hotel counter,” she said in a statement released by the White House. “Any company or individual that tries to exploit Americans in an emergency should know that the Administration is monitoring for allegations of fraud and price gouging and will hold those taking advantage of the situation accountable.”