Owner of Medicine Shoppe in Jeannette denies ‘price gouging’
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As owner of the Medicine Shoppe in Jeannette for 27 years, pharmacist James Beatty believes he’s served the needs of the community to the best of his ability.
That’s why word this week that state Attorney General Josh Shapiro and Beatty entered into an agreement in response to a recent price gouging complaint over the pharmacy’s sales of N-95 protective masks and 2-ounce bottles of hand sanitizers has him “stupefied.”
“We’ve always done everything here with the best interest of our customers in mind. And we never sold N-95 masks before the pandemic or hand sanitizers, but our customers were asking for them because they couldn’t find them other places and, so, I was able to find some,” Beatty said.
According to Beatty, he paid a supplier $9.99 each for 30 masks.
“The wholesaler suggested a retail price of $15.99 and I thought that was high, so I charged $14.99,” Beatty said.
Beatty said the same thing occurred with the sanitizers, which he purchased by the case and sold in the store for $8 each.
“My cost on those were $5.75. Today, my cost would be $8.75 from the supplier,” Beatty said.
“I’m telling you, pre-covid, we primarily did prescriptions and didn’t carry face masks or hand sanitizer, but customers were asking for them so I went out and purchased some. But, the way I understand the legalities, the prices I charged here during the Governor’s Emergency Declaration of March 6 were more than 20% over what I paid from the supplier, so I was accused of price gouging,” Beatty said.
Beatty said his initial 30-mask supply in March was his last and he only bought a few cases of the sanitizers, with 50 per case.
“Unfortunately, the price gouging law does not take into account our wholesale costs and is based only on the retail price to customers. The law also does not account for the products that we gave away free to people who could not afford them,” Beatty said.
He said the attorney general’s office has not provided him with how it came up with the “average prices” it mentioned in the compliance agreement filed in court.
Beatty said he has received numerous telephone calls from customers in support of his work over the years and pointed to a bouquet of flowers resting on the counter sent by another customer in a show of support.
By state law, a price increase of more than 20% during a 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 in court documents.
“Ultimately, we elected to enter into the agreement with the attorney general’s office to resolve the matter and take care of the people who believe that they had been overcharged — not to avoid the $13,350 in civil penalties, which the attorney general suspended under the agreement,” Beatty said.
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.
Beatty believes he would have paid “a lot more” with weeks of litigating the matter and hiring an attorney.
After weeks of “back and forth” with the attorney general’s office, Beatty said he hired a lawyer in Harrisburg.
“I don’t know how much that is going to cost at this point,” he said.
Beatty said he believes he acted in his customers’ best interests, acquiring supplies they said they could not find.
Meanwhile, he vowed to continue to serve the community in times of emergency.
“We’ve always done that,” he said.
The attorney general’s office Friday declined further comment “as to the specifics of the investigation.”
However, the office reported that it has entered into 21 agreements with businesses on price gouging complaints since Gov. Wolf’s March 6 emergency declaration.
To be considered for restitution, consumers should file a consumer complaint form and attach a copy of their receipt from the Medicine Shoppe in Jeannette showing they purchased the N-95 face masks between March 6 and Wednesday. Complaints must be submitted by Nov. 8.