The Division of Consumer Affairs Shares Tips to Avoid Disaster Relief Scams
~ from the Office of the Tennessee Attorney General
NASHVILLE – Following the devastating flooding last week from Hurricane Helene, Tennessee Attorney General Jonathan Skrmetti issues a stern warning to scammers and price gougers:
“While most Tennesseans are showing the best of the Volunteer spirit to our neighbors devastated by Helene, a few bad actors always slime out of the woodwork to take advantage of those in need,” said Tennessee Attorney General Skrmetti. “Price gouging and scamming vulnerable people after disasters is not only repulsive, it’s illegal. My office will not hesitate to enforce Tennessee’s consumer protection laws against any bad actor attempting to rip off Tennesseans recovering from the storm.”
The AG’s Division of Consumer Affairs reminds Tennesseans to be cautious and wary of disaster relief scams. Many Tennesseans look to hire professionals to make repairs to damaged property, find a temporary shelter, or purchase essentials or other supplies while repairing homes or businesses. Others not directly affected by the flooding may want to donate money to help those in need. Although many people will lend a hand during challenging times, some will take advantage of the vulnerable position of survivors of natural disasters or the generosity of donors.
The following information provides helpful tips to reduce chances of being scammed as you seek help for yourself and your loved ones or wish to donate to those in need.
Price Gouging
After natural disasters, bad actors unreasonably raise the prices of essential goods. In Tennessee, it is illegal to “unreasonably raise prices or unreasonably restrict supplies of essential goods, commodities or services” as a direct response to a natural disaster.
Tennessee law also states that upon a declaration of economic disruption by the governor or executive order, people and businesses cannot charge a price that is grossly in excess of the price generally charged for any of the following types of goods or services:
- “Repair or construction services,” which means services performed by any person for repairs to residential or commercial property of any type that is damaged as a result of a disaster or terrorist attack;
- “Emergency supplies,” including water, flashlights, radios, batteries, candles, blankets, soap, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers;
- “Medical supplies” including prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products;
- “Consumer food items,” which means any article that is used or intended for use for food, drink, confection, or condiment by a person or animal;
- “Building Materials” which means lumber, construction tools, windows, and anything else used in the building or rebuilding of property;
- “Gasoline” which means any fuel used to power any motor vehicle or power tool;
- “Transportation, freight, and storage services,” which means any service that is performed by any company that contracts to move, store, or transport personal or business property or rents equipment for those purposes;
- “Housing” which means any rental housing leased on a month-to-month term; and
- “Temporary healthcare staffing provided by a temporary healthcare staffing agency.”
Construction and Repair Scams
You should be wary of contractors who don’t have proper licensing to work on your home or property. Contractors in Tennessee are required to register and be licensed by the Tennessee Board for Licensing Contractors. Ask contractors offering services to provide the name they used to register with the Tennessee Board of Licensing Contractors. You can look up contractors you’re considering hiring to make sure that they are properly registered in Tennessee by searching the company name or contractor information here: https://search.cloud.commerce.tn.gov/.
Another way to learn more about a contractor’s history of providing services is by searching the contractor’s name online along with the words “scam,” “review,” or “complaints,” and reviewing the results to see if others have complained about being scammed by a contractor. You can also search the BBB’s website for complaints and rating information about a contractor’s company.
You do not need to pay for the cost of home repairs in full upfront. Home improvement contractors in Tennessee are generally prohibited from charging more than one-third of the contract price for a deposit, except in certain specific instances. Home improvement contractors are also required to provide a written contract with the names of all parties executing the contract, the nature of the work being completed, the amount you are paying, and when the work will begin.
If your insurance is covering part or all of the cost of repairs, be sure to avoid signing over your entire insurance check or claim to the contractor before the work is completed. That helps ensure that the contractor completes the work, and you have a chance to give your approval.
When applying for assistance for home repairs, know that federal and state entities and reputable not-for-profits do not solicit or accept funds as a condition of providing emergency assistance. You are not required to pay a company to facilitate your application for assistance, but instead you can submit the application yourself.
Charity Scams
Make sure your donations count and are going to the people who really need your help. You can research your charity by going to any of the following websites:
Charities in Tennessee are also required to be licensed. To check to make sure the charity you are donating to is properly licensed in Tennessee go to: https://sos.tn.gov/charities and search the charity name. You can also find more information about the warning signs of charity scams here: https://www.tn.gov/content/tn/attorneygeneral/working-for-tennessee/consumer/resources/materials/charity-scams.html.
Submitting a Complaint
If you are a victim of a scam or price gouging or want to report a person or company for disaster relief scams or price gouging, please contact the Tennessee Division of Consumer Affairs at 615-741-4737 or submit a complaint online at: https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html.
For more information, please visit: Price Gouging & Disaster Recovery (tn.gov).
