While the COVID-19 pandemic persists, the Michigan Department of Attorney General is continuing efforts to protect consumers from predatory and deceptive business practices.
Attorney General Dana Nessel’s office recently signed an agreement with Smokehouse Distribution, an Oakland County business in Commerce Township that allegedly violated the Michigan Consumer Protection Act (MCPA) by engaging in practices like price-gouging.
The business was advertising excessively priced face masks for sale on a website called BeamerSmoke.
The Attorney General’s office began receiving consumer complaints about the business in April, and sent a cease and desist letter in early May.
The Assurance of Voluntary Compliance (AVC) agreement with the business follows an investigation by the Attorney General's office after it received approval for civil investigative subpoenas from the Oakland County Circuit Court in June.
The AVC requires the business to refund customers who purchased the over-priced personal protective equipment and refrain from selling such products again for COVID-19 purposes.
Smokehouse Distribution advertised surgical-type masks at two for $18 and admitted to investigators that the masks were purchased for about 56 cents apiece.
The proprietor also said the higher price was an error that was addressed as soon as it was discovered. However, the price for two masks then dropped to $12 and $10, still a significant markup.
Under terms of the AVC, the seller will provide full refunds to specific consumers who purchased face masks and gloves on the company’s website in April. Customers who will receive a refund will be contacted by the business. Refunds must be provided to consumers within 60 days.
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