The Other PPE: Preventing Pandemic Exploitation

Just like we need to protect our essential workers, we need to protect our ability to buy essential goods, too.

“Price-gouging” has become a hot topic during the COVID-19 pandemic.  Media stories abound concerning outrageous pricing of protective masks, sanitizer products and yes, toilet paper, among other similar products.

In response, the Ontario Government enacted an Emergency Order entitled Prohibition On Charging Unconscionable Prices For Sales Of Necessary Goods (the “Order”). The Order, which came into force with retroactive effect on March 17, 2020, makes it an offence for a person to sell cleaning agents, hygiene products, toilet paper, gloves and personal protective equipment (PPE) (among other “necessary” goods) for an “unconscionable price”. The Order is designed to prevent sellers of those items from taking advantage of vulnerable consumers during the COVID-19 crisis to make a quick buck.

Consumers should note that the Province elected to use of the term “unconscionable” in the Order. That wording matches the existing language contained in the Ontario Consumer Protection Act. That act is a powerful and longstanding law that prohibits a wide range of underhanded selling behaviours in the marketplace. In the case of price-gouging, the Consumer Protection Act prevents any retailer at any time from engaging in selling tactics and conduct that qualify as “unfair practices” or “unconscionable practices” while selling any good or service to a consumer in Ontario.  In addition, the act allows consumers to claim damages and other civil remedies when sellers breach its requirements.  That means that price-gouging could also be the basis for a civil lawsuit on behalf of consumers to claim damages in an appropriate case.

As part of the enforcement of the Order, the government set up a price gouging reporting line to report retailers trying to make a profit off the crisis. According to a report in the Toronto Star, as of  April 14 almost 16,000 complaints have been received.

We look forward to the time when the dust has settled, we can get back outside, hug the ones we love and return to normal life without the need for Emergency Orders targeting price-gouging in the midst of a public health crisis. But until then, Ontario consumers seeking essential and necessary goods and services should take note of the legal protections that exist for their benefit.  If price-gouging happens on a wide scale, consumers may have options to seek justice, including by way of a class action in the appropriate circumstances.

Foreman & Company has a focus on consumer protection law, among other areas.  If you think you have been the victim of price-gouging, we would be happy to discuss the situation to see if our team is able to assist.