Connecticut Attorney General William Tong. Photo: Michael Marciano/ALM

Defense attorneys are likely to see an influx of new business in the coming weeks and months, as prosecutors target businesses accused of taking advantage of public fears by artificially escalating prices on COVID-19-related supplies.

"A lot of attorneys will be very busy defending retailers and people who are price gouging, no doubt," said Connecticut lawyer Mark Dubois, of Geragthy & Bonnano in New London. "The attorney general and his counterparts have some pretty strong tools in the consumer protection area, and they have the ability to conduct civil investigations that can be quite far-reaching."

Attorneys general across the country are mobilizing.

In Florida, businesses have returned more than $240,000 to consumers, who overpaid during the COVID-19 outbreak, according to news reports.

"We are responding in real-time to complaints of price gouging and scams, making sure we are getting price adjustments … getting refunds for Floridians," Attorney General Ashley Moody said in a statement. "We are also making sure we are furthering those investigations by issuing preservation letters and subpoenas. So that work will continue."

Meanwhile, Connecticut Attorney General William Tong said his office had received 558 complaints concerning 313 retailers in the state. His staff has sent letters of inquiry to 255 of these businesses, which include online and brick-and-mortar stores.

In one instance, a retailer allegedly charged $33.47 for a 12 ounce, two-pack of Purell hand sanitizer, a 261% increase over the price about two months earlier in January. Another business allegedly charged $555 for a 40-pack of 3M N95 masks, representing a more than fivefold price increase.

Tong's office is considering, on a case-by-case basis, whether to file suit against those retailers.

"The state has subpoena power and investigatory powers and those can be quite intrusive," said Wiggin and Dana attorney Robert Langer, who specializes in antitrust law.

3M-Related Actions

But are there any possible defenses for price gouging?

"I suppose there could be a whatever-the-market-can-bear defense," Dubois said Wednesday. "While you might have technical legal defenses, these cases end up being tried in the court of public opinion. People do not look kindly on those accused of price gouging."

Meanwhile, Tong's office issued a release announcing it had joined 20 other attorneys general urging The 3M Co. to take further measures to prevent price gouging of personal protective equipment.

The attorneys general are asking the company to take several actions, including creating a database of 3M's inventory of N95 respirators for government officials and health care providers, and to make transparent how inventory is being distributed, and how orders are being filed.

In addition to Connecticut, participating states include California, Delaware, New York and Pennsylvania.

And earlier in April, Democrats in the U.S. House of Representatives, according to Politico, introduced legislation that would ban online sellers from exploiting loopholes in price-gouging policies. That legislation is pending.

Read more:

Anti-Price-Gouging Enforcement in the Age of COVID-19