Missouri Attorney General Warns of Winter Scams & Price Gouging: What You Need to Know
As winter storms loom, Missouri Attorney General Catherine Hanaway has issued a critical warning to consumers: be on guard against price gouging and a surge in scams targeting those preparing for inclement weather. This isn’t a new phenomenon, but experts predict an increase in both due to ongoing economic pressures and the increasing sophistication of scam tactics.
The Rising Threat of Price Gouging
Price gouging, defined as drastically increasing prices on essential goods during a declared state of emergency, remains a significant concern. The current state of emergency in Missouri extends until February 22nd, meaning sellers are prohibited from exploiting the situation. But what constitutes “drastic”? According to Missouri law, it’s a price increase that exceeds the normal markup.
Recent events, like the February 2021 Texas winter storm, offer a stark example. Reports surfaced of bottled water selling for $40 a case and generators priced at double their usual cost. While Missouri’s laws aim to prevent this, enforcement relies heavily on consumer reporting.
Pro Tip: Before purchasing essential items, document prices at multiple stores. This provides concrete evidence if you suspect price gouging.
Scams to Watch Out For This Winter
Beyond inflated prices, scammers are actively exploiting the fear and urgency associated with winter weather. Here’s a breakdown of the most common threats:
Utility Imposter Scams: A Chilling Trend
These scams involve individuals posing as utility workers, often after a storm. They may claim to need immediate access to your property to repair damaged equipment and demand upfront payment. The Federal Trade Commission (FTC) reported a 63% increase in imposter scams in 2022, with many targeting homeowners during and after severe weather events.
Real-Life Example: A resident in St. Louis recently reported a man claiming to be from the electric company demanding $200 for a “necessary transformer repair.” The resident, thankfully suspicious, contacted the utility company directly, confirming the man was a fraud.
Contractor Scams: Repairing the Damage – and Your Wallet
Following a storm, demand for contractors skyrockets. Unfortunately, so does the number of fraudulent operators. These scammers often offer suspiciously low bids, demand large upfront payments, and either perform shoddy work or disappear altogether. The Better Business Bureau (BBB) consistently ranks home repair scams among the most prevalent consumer complaints.
Did you know? Licensed contractors are required to register with the state. You can verify credentials through the Missouri Department of Insurance, Financial Institutions & Professional Registration: https://pr.mo.gov/
Protecting Yourself: A Checklist
- Verify Credentials: Always check licenses and insurance before hiring a contractor.
- Get Multiple Quotes: Don’t settle for the first bid.
- Avoid Cash Payments: Use checks or credit cards for traceable transactions.
- Read Contracts Carefully: Understand the scope of work, payment terms, and warranty information.
- Trust Your Gut: If something feels off, it probably is.
The Future of Winter Scams: What’s on the Horizon?
Experts predict a rise in sophisticated scams leveraging technology. This includes:
- Smishing (SMS Phishing): Scammers sending fraudulent text messages posing as utility companies or government agencies.
- AI-Powered Voice Cloning: Using artificial intelligence to mimic the voices of trusted individuals, like utility representatives, to gain your trust.
- Social Media Scams: Fake offers for storm cleanup services advertised on social media platforms.
These evolving tactics highlight the need for increased consumer awareness and vigilance.
Reporting Fraud and Price Gouging
If you suspect price gouging or have been targeted by a scam, report it immediately:
- Missouri Attorney General’s Consumer Protection Hotline: 800-392-8222
- Online Complaint Form: https://ago.mo.gov/
- Federal Trade Commission (FTC): https://reportfraud.ftc.gov/
FAQ: Winter Scams & Price Gouging
Q: What is considered price gouging?
A: A significant increase in the price of essential goods and services during a declared state of emergency, exceeding normal markup.
Q: How can I verify a contractor’s license?
A: Check with the Missouri Department of Insurance, Financial Institutions & Professional Registration (https://pr.mo.gov/).
Q: What should I do if someone comes to my door claiming to be from the utility company?
A: Never let them inside. Contact your utility company directly to verify their identity.
Q: Is it okay to pay in cash for home repairs?
A: It’s generally not recommended unless you know the contractor personally. Cash payments are difficult to trace.
Stay informed, stay vigilant, and protect yourself and your family from winter scams and price gouging. Share this information with your neighbors and loved ones to help them stay safe this season.
Want to learn more about protecting yourself from scams? Explore our articles on identity theft prevention and online safety.
