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MIAMI -A Miami-Dade County man who allegedly violated Florida's price gouging law by selling generators for grossly inflated prices while South Floridians were without power in the wake of Hurricane Wilma has been sued by the state Attorney General's office and the Miami-Dade County attorney.
The lawsuit alleges that David Medina sold generators off the back of a truck on a south Miami-Dade street corner for prices unconscionably higher than what the generators usually cost. Selling essential commodities for unconscionable prices during a hurricane emergency is a violation of Florida statutes.
As Wilma struck Florida, Medina of Miami Beach, allegedly traveled to North Carolina and bought 35 generators at a Costco store - 11 larger models costing $529.99 each and 24 smaller ones costing $279.99 each. He returned to Florida and started selling the generators at the corner of Coral Way and S.W. 87th Avenue, advertising with a homemade sign placed on the truck. Medina did not have an occupational license to sell the generators.
Medina allegedly sold the larger generators for $900 each, a 70 percent markup, and the smaller ones for $600, a 114 percent markup. Most of the generators had been sold before investigators with the Attorney General's Office spotted the operation.
The complaint was filed under Florida's price gouging statute and the Florida Deceptive and Unfair Trade Practices Act, which are contained within Chapter 501 of the Florida Statutes. Violations of the price gouging statute are subject to civil penalties of $1,000 per violation up to a total of $25,000 for multiple violations committed in a single 24-hour period. Florida's Deceptive and Unfair Trade Practices Act provides for civil penalties of $10,000 per violation or $15,000 for violations that victimize a senior citizen or handicapped person.
To date, the Attorney General's Office has recovered more than $939,000 in restitution for Florida consumers from price gouging settlements and other resolutions. Other investigations and settlement negotiations are ongoing.
A copy of the civil complaint is available at: http://myfloridalegal.com/webfiles.nsf/WF/KGRG-6HTT5X/$file/Medina+Complaint.pdf 11-07-05
© 2005 North
Country Gazette
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