Press Releases

Kuster Calls on Bureau of Consumer Protection to Protect Consumers from Price Gouging, Ensure Refunds of Travel Expenses

Today, Rep. Annie Kuster (NH-02) wrote to Andrew Smith, Director of the Bureau of Consumer Protection, urging the Bureau to take measures to protect consumers from unreasonable price increases on home-health products during the COVID-19 pandemic. Kuster also encouraged the Bureau to work with airline and travel companies to resolve outstanding refunds in a timely manner. On Saturday, Kuster voted in favor of the Families First Coronavirus Response Act, which passed the House. This legislation will bolster the federal government’s response to the COVID-19 outbreak and address some of the economic impacts of this public health crisis.

“As a result of COVID-19, there are many reports of unreasonable price increases at popular retailers and online distributors of common household cleaning and hygiene products,” wrote Kuster. “While it is my understanding that retailers and distributors are, in many cases, making efforts to reduce or mitigate these practices, any potential lack of access to sanitizers and other personal hygiene products caused by these unfair business practices could have potentially harmful public health effects. I encourage the Bureau of Consumer Protection to take measures to ensure consumers are protected from unreasonable price increases pertaining to crucial home-health products.”

“I have been made aware of a lack of responsiveness on the part of many major airlines in the issuance of refunds for canceled flight plans,” Kuster continued. “As airline passengers across the country continue to cancel travel plans as a precautionary measure to combat the spread of COVID-19, these requests for refunds may continue to grow. I encourage the Bureau to work with airline companies to resolve outstanding refunds in a timely manner.”

The full text of Rep. Kuster’s letter can be read here and below:

Dear Mr. Smith:

I write in regard to consumer protection concerns in markets affected by the spread of COVID-19. As residents in my district and across the country continue to track and respond to the spread of the novel coronavirus (COVID-19), two major concerns have been brought to my attention related to consumer protection: 1) Reports of price gouging of products such as sanitizers, hand soaps, cleaning products, surgical masks etc. and 2) reports concerning refunds of travel expenses from major passenger airlines.

In addition, as a result of COVID-19, there are many reports of unreasonable price increases at popular retailers and online distributors of common household cleaning and hygiene products. While it is my understanding that retailers and distributors are, in many cases, making efforts to reduce or mitigate these practices, any potential lack of access to sanitizers and other personal hygiene products caused by these unfair business practices could have potentially harmful public health effects.

Throughout my many conversations with New Hampshire public health officials and my constituents, it is evident that additional steps must be taken to support consumers. Medical professionals and public health officials alike have consistently emphasized the importance of hand-hygiene as a critical component in curbing the spread of COVID-19. I encourage the Bureau of Consumer Protection to take measures to ensure consumers are protected from unreasonable price increases pertaining to crucial home-health products.

Furthermore, I have been made aware of reports of a lack of responsiveness on the part of many major airlines in the issuance of refunds for canceled flight plans. As airline passengers across the country continue to cancel travel plans as a precautionary measure to combat the spread of COVID-19, these requests for refunds may continue to grow. I encourage the Bureau to work with airline companies to resolve outstanding refunds in a timely manner.

Many State Attorneys General have issued guidance on reports of consumer protections. As the availability of crucial consumer products continue to be affected by the ongoing public health concerns facing consumers, leadership from the federal government will be critical. To help me further understand how the Bureau of Consumer Protection is tracking and responding to these concerns, I request that the Bureau issue a response to the following questions:

1.         Does the Bureau have reporting procedures in place to track reports of price gouging?

2.         Are there mechanisms to ensure the timely refunds of travel expenses?

3.         What steps are being taken to protect consumers from predatory practices as the coronavirus continues to spread?

Thank you for your continued leadership and thoughtful approach to mitigating the impact of these practices.

Sincerely,

Ann McLane Kuster

Member of Congress

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