New Jersey News
Lawsuit filed against alleged price gougers
CLIFTON, N.J. (WABC) -- Nearly a dozen New Jersey businesses were added to a lawsuit and accused of price gouging.
Seven hotels and three gas stations were allegedly taking advantage of customers after Hurricane Sandy.
Some hotels are accused of charging $400 a night for one room.
Thousands of people sat in lines during the gas shortage after Sandy.
Unfortunately, when some reached the pumps they found prices sometimes a dollar more expensive than before the storm.
A Bloomfield gas station is one of many accused and New Jersey is tackling every complaint of price gouging that's coming in.
Gas stations and hotels got the most complaints. The master list is long.
"FEMA is paying for those hotels, and they're not going to pay over market price," Governor Christie said.
"We did nothing wrong," said Romi Gandhi, Howard Johnson Express manager in Clifton.
Romi Gandhi is a manager at the Howard Johnson Express, Clifton where the state says the hotel charged $179 per room per night before Sandy, $449.99 after Sandy, and that 177 customers were charged that price.
The hotel has hired an attorney.
Fines are $10,000 on the first offense and $20,000 for any more.
The state says they put out the warning so everybody knew they were watching.
"It's horrible they would take advantage of people when they needed help most," said Eric Kanefsky, NJ Div. of Consumer Affairs.
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