$25 Masks Sold In Ziploc Bag Called Gouging, Paoli Pharmacy Fined

HARRISBURG, PA —Consumers tipped off the state Attorney General's office that a local pharmacy was selling facemasks in Ziplock bags for $25 a mask. Pennsylvania AG Josh Shapiro shut down what his office called "price gouging efforts at Paoli Pharmacy" in Chester County on July 7. Shapiro called the sales "unlawful," ordering a penalty of over $5,000 and restitution to consumers.

The pharmacy sold approximately 100 masks at the high price before agreeing to comply with the Pennsylvania Office of Attorney General's demand to observe the state's Price Gouging Act, according to a media release from Shapiro's office.

"We won’t tolerate illegal price gouging during this emergency, and we're taking action every day to stop it—here in Chester County and across Pennsylvania," Shapiro said. "Pennsylvanians need security and financial protection right now, especially when so many have lost wages and 30 percent of our residents are out of work."

The attorney general emphasized Pennsylvanians "have a right to purchase life-saving goods at reasonable prices whether in store or online."

Under the Price Gouging Act, a price increase of more than 20 percent during a declared state of emergency is considered price gouging. The Pennsylvania Office of Attorney General entered into an Assurance of Voluntary Compliance (AVC) with Paoli Pharmacy after the Office received the tips alleging that the store was selling facemasks for unlawful prices. The AVC requires Paoli Pharmacy to pay $5,300 in civil penalties, in addition to restitution of $1,946.50 for consumers who purchased the facemasks. Paoli Pharmacy also agreed to fully comply with all provisions of the Pennsylvania Consumer Protection Law and Price Gouging Act moving forward.

The Attorney General's office asks consumers who see suspicious price increases on products like groceries and medicine to report the sales by email to: pricegouging@attorneygeneral.gov and to fill out a complaint form so the state can put a stop to price gouging.

Consumers who purchased N95 face masks from Paoli Pharmacy may be eligible for restitution if they paid more than they should have. In order to be considered for restitution, customers should file a consumer complaint form and attach a copy of their receipt showing they purchased the facemasks between March 6, 2020 and July 7, 2020. Complaints must be submitted by September 4, 2020 to be considered, according the the Attorney General's office.