DATCP sends cease and desist letters to 16 Milwaukee-area companies over price gouging

MILWAUKEE --  The Department of Agriculture, Trade and Consumer Protection (DATCP) on Tuesday, March 24 sent cease and desist letters to Wisconsin businesses accused of price gouging on essentials like toilet paper, bleach and bottled water amid the coronavirus pandemic.

According to a press release from the DATCP, following dozens of complaints and thorough price checking at over 100 stores across Wisconsin, the agency issued cease and desist letters to 16 companies suspected of raising prices unlawfully during this period of economic disruption:

One such company, N95Sales.com, which engaged in suspected price gouging on N95 masks, a critical item for front-line health care workers that is in short supply in Wisconsin, officials said. The site no longer exists.

"It appeared on its face that the price inflation was excessive and a violation of the law," said Lara Sutherlin, director of the Wisconsin DATCP.

In Executive Order #72, Governor Evers declared a public health emergency in the State of Wisconsin. He also declared that Wisconsin is experiencing a period of abnormal economic disruption because of COVID-19. This declaration authorizes DATCP to enforce Wisconsin’s price gouging law until the emergency has ended. This declaration applies to the entire state and applies to any consumer good or service being sold at wholesale or retail.

"Wholesalers and retailers, in general, are not price gouging Wisconsin residents," said Sutherlin. "In general, people are trying to comply with the law."

Sutherlin said the department received 90 complaints about retailer prices since March 12, when it became illegal to sell items at prices 15% higher than pre-emergency prices.

"The items we're seeing are cleaning supplies, masks, hand sanitizers, toilet paper, that kind of thing," said Sutherlin.

Businesses have 10 days to respond and explain why prices went up -- possibly a legitimate reason.

"Wholesalers and retailers are entitled to raise their prices if the cost of the business is going up with respect to that item," said Sutherlin.

Kostas Cios, legal counsel for Cermak told FOX6 News:

El Rey President and Owner Ernesto Villarreal issued the below statement to FOX6 News -- a response issued to customers when allegations began. A spokesman added:  "After tirelessly trying to defend ourselves against these claims, we feel it is almost impossible to do so.  It is an extremely difficult time to operate our stores.  As we discussed earlier, suppliers are limiting our orders and we are forced to look to alternate suppliers to supply our community.  We feel frustrated by these claims, but motivated to continue to serve our communities."

Menards officials did not respond to FOX6's request for comment.

To report suspected price gouging, please download a complaint form from the DATCP website and submit it via email to DATCPHotline@wisconsin.gov.

Be prepared to provide the following information: