Jeannette pharmacy enters into price gouging agreement with Pa. attorney general
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A Jeannette pharmacy has entered into an agreement with the state Attorney General Josh Shapiro’s office to avoid a potential $13,350 civil penalty and reimburse customers who were overcharged for N-95 masks and hand sanitizer at the start of the pandemic.
The attorney general’s office filed the signed assurance compliance agreement Wednesday in Common Pleas court in Greensburg with the Medicine Shoppe at 501 Harrison Ave. in response to a price gouging complaint filed this spring with the attorney general’s office.
Messages left for Medicine Shoppe President James Beatty and his attorney, Susan Yocum of Eckert Seamans Cherin & Mellott LLC in Harrisburg, were not immediately returned.
Shapiro’s office did not disclose in court documents the specific prices the pharmacy charged for the masks and two-ounce containers of hand sanitizer, but said in court documents the prices “were in excess of 20% of the average prices that at which some or similar products were obtainable in the affected area prior to March 6” — the date Gov. Tom Wolf issued an emergency declaration due to the coronavirus pandemic.
By state law, a price increase of more than 20% during a declared state of emergency is considered price gouging.
Prices the Medicine Shoppe charged for the masks and sanitizer were at an “unconscionably excessive price,” the attorney general’s office alleges.
Under terms of the settlement, the Medicine Shoppe agreed to comply with all provisions of the Pennsylvania Consumer Protection Law and Price Gouging Act. The company also agreed to pay $1,029 to the attorney general’s office, of which $973 will be used to pay restitution and $56 will go into a public education fund.
The $13,350 civil penalty is suspended unless the court determines the company violated terms of the assurance compliance agreement, according to the filing.
To be considered for restitution, consumers should file a consumer complaint form and attach a copy of their receipt showing they purchased the N-95 face masks between March 6 and Wednesday. Complaints must be submitted by Nov. 8 to be considered.