Acting Attorney General John J. Hoffman and the New Jersey Division of Consumer Affairs today announced that Stephen’s Landscaping, d/b/a “Stephen’s Garden Center,” of Long Branch, will pay $33,000 to resolve the state’s allegations that it engaged in unlawful price gouging when selling generators during the Superstorm Sandy state of emergency, as well as other alleged deceptive practices.
The state also had alleged that Stephen’s Landscaping violated the New Jersey Consumer Fraud act before the Sandy state of emergency by selling generators that had been recalled due to potential fire hazards. The state further alleged that, during the immediate aftermath of Sandy, Stephen’s Landscaping violated state law by selling motor fuel to consumers without being licensed to engage in the retail sale of motor fuel.
Under the terms of the Final Consent Judgment announced today, Stephen’s Landscaping will pay the Division of Consumer Affairs a settlement amount of $33,000. An additional $45,870.50 payment shall be suspended and automatically vacated after one year, provided that Stephen’s Landscaping complies with all terms of the Final Consent Judgment.
Governor Chris Christie declared a state of emergency on October 27, 2012, in advance of Sandy’s landfall. The state’s complaint against Stephen’s Landscaping alleged that the business sold 132 generators to consumers at excessive price increases, as defined by New Jersey’s price gouging statute.
The state’s complaint specifically alleged that, during the state of emergency, Stephen’s Landscaping increased its markup for generators by as much as 80.35 percent, compared to its markup on generators prior to the state of emergency.
In addition, as recently as the day before the state of emergency declaration, Stephen’s Landscaping allegedly sold generators that posed a fire hazard due to fuel leakage, and had been subject to a recall order by the U.S. Consumer Product Safety Commission.
Finally, during the five days immediately after Superstorm Sandy struck New Jersey, Stephen’s Landscaping allegedly sold 44 five-gallon gas cans, filled with gasoline, at $50 per can – even though the company was not licensed by the New Jersey Division of Taxation to engage in the retail sale of motor fuel.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint online with the State Division of Consumer Affairs or by calling 800-242-5846 (toll free within New Jersey) or 973-504-6200.