Consumer Brands Calls on Attorney General to Act on Coronavirus Price Gouging
FOR IMMEDIATE RELEASE
March 9, 2020
Leslie Lake, 571-378-6757, [email protected]
ARLINGTON, Va. — The Consumer Brands Association today called on U.S. Attorney General William Barr to protect Americans from the price gouging of critical consumer packaged goods (CPG) related to the coronavirus outbreak. The U.S. Department of Justice (DOJ), working through the National Center for Disaster Fraud, can better coordinate with federal, state and industry partners — particularly state attorneys general — to help deter and mitigate this illicit practice.
“Consumer Brands fears price gouging for consumer products — which has been on the rise in recent weeks — could prevent consumers from obtaining the preventative consumer products they need to protect themselves from the spread of COVID-19,” Bryan Zumwalt, executive vice president of public affairs for Consumer Brands, wrote in a letter to Attorney General Barr. “Consumer Brands urges the DOJ to collaborate with federal, state and industry partners to take all possible actions to counteract price gouging of consumer products needed to prevent the spread of COVID-19.”
According to new research from Consumer Brands, 24 percent of Americans have seen price gouging on high-demand consumer products like hand sanitizer, non-perishable foods, cleaning supplies and bottled or canned beverages. Americans are frustrated by those taking advantage of the situation — with 88 percent seeking options to report price gouging to the government.
“The CPG industry is unequivocally opposed to price gouging and works every day — crisis or not — to ensure consumers have access to the affordable products they rely on. Price gouging undermines that mission and, in the case of a pandemic, is a threat to public health,” said Zumwalt.
More than half (53%) of Americans have already, or plan to, stock-up on products to prepare for possible impact from the coronavirus. The majority (89%) of American consumers think the government should be doing more to protect against supply chain disruptions of critical consumer goods during national crises.
“The CPG industry is increasing production of essential products, but the coronavirus is a stress test on our supply chain — making it apparent that the government must help where it can,” said Zumwalt.
Thirty-seven percent of consumers have experienced a supply shortage or purchasing restrictions on high-demand consumer products, and another 28 percent reported that friends or family have seen these shortages. Some retailers are limiting the number of high-demand items a consumer can purchase at one time, which may help keep critical products in stock across the country.
Consumer Brands will also be working with the newly created Congressional Supply Chain Caucus to help develop strategies to mitigate global supply chain disruptions caused by stressors such as the coronavirus.
“We can’t play catch-up when disaster strikes. The government must be proactive in its supply chain policy, said Zumwalt. “The government should step in to protect consumers by ensuring bad actors cannot take advantage of a crisis through exploitative pricing of essential products.”
For more information about the CPG industry’s response to the coronavirus, visit www.consumerbrandsassociation.org/blog/coronavirus.
The Consumer Brands Association champions the industry whose products Americans depend on every day, representing more than 1,700 iconic brands. From household and personal care to food and beverage products, the consumer packaged goods industry plays a vital role in powering the U.S. economy, contributing $2 trillion to U.S. GDP and supporting more than 20 million American jobs.
Published on March 9, 2020
Our Updates, Delivered to You
Receive the latest updates from the Consumer Brands Association.