New Mexico AG warns businesses of price gouging, scamming victims of Ruidoso, NM wildfires

Price gouging and scammers attempting to take advantage of the victims of the South Fork Fire and Salt Fire near Ruidoso, New Mexico will not be tolerated, authorities said.

"This community has come together and really reached out neighbor to neighbor, friend to friend, and lent each other a hand in probably the most difficult circumstance you can imagine to get themselves in a position where they're going to start rebuilding," New Mexico Attorney General Raul Torrez said. "We know that's going to be a really long and complicated task. It's in moments like this, in moments of crisis, you see the best in people. You see what they're made of. You see what kind of character and compassion they have for one another.

"Unfortunately, in moments like this, sometimes it brings out the worst in people. People who engage in unfair practices, price gouging, hotel rates that have been unjustifiably raised, putting a strain on people who are at their wit's end, retailers, people selling gas, individuals who might think this is an opportunity to take advantage of a community in need won't be tolerated."

The Attorney General's Office will expand its resources to investigate allegations of price gouging and other fraudulent activities to allow law enforcement and other agencies to continue to work on emergency and recovery issues.

"I have indicated to local law enforcement and leaders here is that we want them to remain focused on recovery and emergency operations," Torrez said. "We want the public to understand that if they have experienced what they think is an unfair practice where someone is taking advantage of them, that they are to send that information and those complaints to the (New Mexico) Department of Justice. Our attorneys and investigators will take all necessary legal action to make sure that those people who engage in that kind of activity are held responsible for it."

Reports of hotels increasing prices

There have been no reports of price gouging or fraudulent activities other than at hotels, authorities said. Authorities are investigating hotels near the wildfires and all the way north to Albuquerque for increasing their prices, Torrez said.

"The Department of Justice is going to be repositioning a lot of its consumer protection and law enforcement resources to focus on reports that we already received from Roswell, Alamogordo and surrounding communities," Torrez said. "But frankly, we've had reports of price increases at hotels as far away as Albuquerque."

More: Containment grows on South Fork Fire, Salt Fire near Ruidoso, New Mexico: live updates

Torrez said he was unable to discuss any details of ongoing investigations into hotels that have increased their prices for a room.

"I can tell you that the first reports to reach our office were directly related to a substantial increase in the nightly hotel rates in the Roswell area and that will be the first place that we will be initiating an active civil investigation," Torrez said. "At this point, I don't think there's a sufficient evidentiary basis to initiate a criminal investigation, but, by week's end, there will be."

Any hotels or other businesses accused of price gouging will have to justify their increase in prices as part of the Attorney General Office's investigations.

"We have broad authority to investigate any unconscionable business activity, any activity where it looks like someone is using their market power to take advantage of people," Torrez said. "That includes issuing what are called civil investigative demands. We can actually demand information from businesses about what their rates were a month ago and what their rates were last week and today. We will ask for a justification for any increases in those types of practices that have been engaged in."

More: Here is how Ruidoso fire survivors can get FEMA aid, avoid scammers

As areas of New Mexico remain a tourist destination and crowds expected to gather for the upcoming annual Roswell UFO Festival, the attorney general's office will consider historical records on what hotels have charged consumers as part of its investigations.

"One of the things that we're able to do is we look back at historic economic patterns," Torrez said. "So the example of using peak tourist events and things like that, that naturally draw a recurring level of activity, there is always going to be in a tourist destination some variability in the prices that people get charged. That is something that is normal and not something that will be subject to an investigation."

GoFundme, crowd sourcing donations could be investigated

The Department of Justice will investigate any reports of GoFundMe or other crowd sourcing donation accounts if they believe the accounts are being created by scammers attempting to steal money by pretending to be victims of the wildfires.

"If someone who is hurting and in need in this community and is working with family members and community members and puts up a legitimate GoFundMe page, by all means they should do that," Torrez said. "They should use modern technology and all the tools that they have at their disposal to try and get the resources they need to put their lives back together.

"If somebody is engaged in putting up a fraudulent GoFundMe page, that's not going to be a civil response from our office. That's a criminal violation. That's fraud. You're not going to get a letter from the Attorney General's Office. You're going to meet some of our special agents and they'll show up and put you in handcuffs."

How to report price gouging, fraudulent activities

Any suspicions of price gouging and other fraudulent activities can be reported to the Attorney General's Office by:

• Online: nmdoj.gov/get-help and complete the online complaint form.

• Phone: 505-490-4060, option 3.

Important information to include when reporting fraudulent activities:

• Name and location of the business involved.

• Description of the suspected price gouging or fraudulent activity.

• Date and time of the incident.

• Any supporting documentation, such as receipts, advertisements, or photos.

“We rely on the public’s cooperation to help us safeguard our community," Torrez said. "Together, we can combat unethical practices and protect the rights of consumers.”

Aaron Martinez may be reached at [email protected] or on Twitter @AMartinezEPT.

This article originally appeared on El Paso Times: New Mexico wildfires victims urged to report price gouging, scams