$80 for hand sanitizer? California warns businesses against coronavirus price gouging

California Gov. Gavin Newsom this week called out Amazon when he saw packages of hand sanitizer advertised on the website for $80.

“Keeping your hands clean will help prevent the spread of coronavirus,” Newsom wrote Tuesday on Twitter. “Seriously, @amazon? These prices are absurd.”

The company is cracking down on online merchants trying to sell sanitizer for outlandish prices, but it’s not hard to find products advertised there at the eye-popping costs Newsom noted. Some sellers on Amazon and eBay on Thursday advertised 8 ounce bottles of Purell hand sanitizer at $50 or more.

The prices reflect fears that soap and sanitizer might be in short supply as the novel coronavirus spreads to more communities. Newsom and Attorney General Xavier Becerra this week each warned businesses not to exploit those worries by gauging customers, and declared their intent to hold accountable companies that hike prices of basic goods.

Newsom on Wednesday signed an emergency declaration over COVID-19 that includes prohibitions against price gouging. Becerra said the rules “make it illegal for businesses to raise the prices of most goods and services by more than 10 percent.”

“Here’s what we don’t appreciate or tolerate in California: Those who take advantage of distressed families grappling with the effects of an emergency, who are trying to take steps to be prepared,” Becerra said during a press conference Thursday.

That includes food, emergency supplies, medical supplies, building materials and gasoline, according to Becerra’s office, as well as repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations and rental housing.

In his press conference on Wednesday, Newsom held up a bottle of hand sanitizer that he said was being sold for $17.

“That’s unconscionable,” Newsom said.

Newsom at that event also praised Amazon for reaching out to his office after he called attention to the exorbitantly priced hand sanitzer. He said the company was working with the state “cooperatively to go after those that are taking advantage of customers that utilize their platform.”

A representative for Amazon said in a statement that “there is no place for price gouging on Amazon.”

“We are disappointed that bad actors are attempting to artificially raise prices on basic need products during a global health crisis and, in line with our long-standing policy, have recently blocked or removed tens of thousands of offers. We continue to actively monitor our store and remove offers that violate our policies,” the representative said.

While Becerra declined to give examples of specific cases of price gouging, he said that there have been a number of instances his office has learned of.

“I’ve heard numerous reports of runs on toilet paper. Obviously hand sanitizers. I would imagine masks,” Becerra said, describing items which have been sold at unacceptably high prices.

Becerra warned that price gougers will face criminal prosecution, punishable by up to a year in jail and a $10,000 fine.

“If you violate our price gouging laws, you’d better be prepared to pay the price for your law-breaking,” Becerra said.

You can report price gouging by visiting oag.ca.gov/report.

This story was originally published March 5, 2020 at 2:39 PM with the headline "$80 for hand sanitizer? California warns businesses against coronavirus price gouging."