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Attorney general partners with Facebook to stop price-gouging

Alabama Attorney General Steve Marshall on Friday announced a partnership with Facebook to address price-gouging on the social media site by people looking to profit from the COVID-19 pandemic. 

“There is no question that unscrupulous operators are trying to take advantage of Alabamians looking to buy basic necessities to protect and sustain themselves and their families during the ongoing coronavirus epidemic,” Marshall said in a statement. “What’s more, much of that illegal activity is centered online because many consumers find it easier to purchase supplies on the internet due to lack of local availability or self-quarantining. As my office seeks ways to protect our consumers, I am pleased to announce that Facebook is one of several major e-commerce platforms to respond to my call to participate in a coordinated effort to identify and shutdown online price gouging.”

Facebook has agreed to review and remove price-gouging listings and advertisements from the website, according to a press release form Marshall’s office.

The press release from Marshall’s office notes that Facebook has already banned advertising or sale of medical masks, hand sanitizer, surface disinfecting wipes and COVID-19 testing kits, and the site also as prohibited products “cures” or products that claim to prevent someone from contracting the virus. 

Recent research by Digital Citizens Alliance showed, however, that many of those banned products and advertisements continue to appear on Facebook, despite the company’s March 6 announcement prohibiting them.

Alabama’s price-gouging law went into effect on March 13 upon Gov. Kay Ivey’s declaration of a state of emergency.

“Although what constitutes an unconscionable price is not specifically set forth in state law, a price that is 25% or more above the average price charged in the same area within the last 30 days — unless the increase can be attributed to a reasonable cost in connection with the rental or sale of the commodity — is a prima facie case of unconscionable pricing,” according to the release.

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To file an illegal price gouging report visit the Alabama Attorney General’s Consumer Interest Division at  https://www.alabamaag.gov/consumercomplaint, or call 1-800-392-5658 to receive a form by mail to complete and return.

Written By

Eddie Burkhalter is a reporter at the Alabama Political Reporter. You can email him at [email protected] or reach him via Twitter.

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