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The New York attorney general has filed a lawsuit accusing Quality King of price gouging related to Lysol products during the coronavirus outbreak.
According to the lawsuit, wholesale supplier Quality King increased their prices for Lysol disinfectant products when selling to local grocery and discount stores in New York.
As a result, consumers were allegedly forced to pay dramatically increased prices for these products – prices they were willing to pay considering the ongoing global crisis.
“Quality King’s profiteering during this time of crisis is appalling,” said New York Attorney General Letitia James in a statement.
“Instead of ensuring New Yorkers could protect themselves from this virus and stop the spread, Quality King chose to prey on a global pandemic to line its own pockets. I won’t hesitate to take action against any company that tries to cheat New Yorkers during this crisis and beyond.”
Before the pandemic, Quality King reportedly sold a 19 oz can of Lysol for $4.25 or a 12 pack of these cans for $51. Between January and April, Quality King allegedly increased the prices of these products to reflect the increased demand for them.
During February, the price of a single can reportedly increased from around $5 to a 12 pack costing $60. In early March, prices allegedly increased again with single cans priced at $7.95 and 12 packs priced at $95.45. By the end of the month, single cans reportedly cost up to $9.15 with 12 packs priced at around $110.
Over the span of two months, Quality King allegedly doubled the price of Lysol products. Despite this price gouging, the wholesale supplier was reportedly charged the same flat costs of $3.54 per can or $42.50 per 12 pack when purchasing from their own suppliers.
The lawsuit claims similar price gouging was implemented in Lysol disinfectant wipe products.
“Quality King has done so not to offset increased costs but simply to line its own pockets and profit off New Yorkers during a time of crisis,” the Quality King price gouging lawsuit argues.
“By gouging prices Quality King has dramatically boosted its gross profit margins for Lysol Spray, almost quintupling them over its pre-crisis margins.”
The Quality King price gouging lawsuit claims that, through unfair pricing, the company has increased their profit margin from 21 percent before the pandemic to more than 95 percent during the crisis – a nearly five time increase.
This price gouging has caused serious financial harm to New Yorkers who are just doing their best to survive amidst the ongoing pandemic, the Quality King lawsuit says.
Quality King spokesman Pat Werblin rebuffed the claims in a written statement to Newsday, saying that the “costs to keep the supply chain open have materially increased in many ways including the costs of implementing protective measures to preserve the health and safety of Quality King’s employees.”
Although the company argues that increased pandemic costs justify the price gouging, the Quality King lawsuit disagrees. The lawsuit even notes that the company “has asserted to the NYAG that it experienced certain increased costs related to the COVID-19 pandemic,” but argues that “those purported costs do not account for its increases in the price of Lysol.”
When asked about these allegations, Werblin reportedly said: “We will address all of the Attorney General’s allegations to the court at the proper time.”
The New York attorney general seeks injunctive relief barring Quality King from future price gouging along with penalties, disgorgement of ill gotten profits and restitution for injured consumers.
The attorney general’s office reportedly filed their complaint against Quality King as a part of a larger price gouging probe.
According to the office, thousands of complaints have been sent in during the pandemic detailing excessive prices being charged for essential items such as disinfectants, sanitizers, household paper products, and food staples.
Several other state authorities and consumers around the country have also taken action against price gouging. EBay recently faced a price increase class action lawsuit claiming that the website encourages their sellers to overprice essential items. Amazon has also faced a price gouging class action lawsuit, alleging that prices have been significantly increased since the start of the pandemic.
Have you overpaid for products due to price gouging? Share your experiences in the comments section below.
The lawsuit was brought by New York Attorney General Letitia James, Assistant Attorney General John P. Figura, Chief of the Bureau of Consumer Frauds and Protection Jane M. Azia, amongst others.
The Quality King Price Gouging Lawsuit is People of the State of New York v. Quality King Distributors Inc., et al., Case No. unknown, in the New York State Supreme Court for New York County.
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33 thoughts onQuality King Faces Lysol Price Gouging Lawsuit
Add me please
I bought lysol for 12.89