In July, a mom-and-pop shop in New York’s SoHo got its costliest customer ever: an inspector from the city’s consumer protection agency, the Department of Consumer Affairs. She browsed the aisles of Thompson Chemists, a small pharmacy that’s been in business for 27 years. Jolie Alony, the store’s co-owner along with her husband Gary, took no notice of the visitor until she flashed her badge. “I want to know how many thermometers you have,” the inspector demanded, then began looking at her disinfecting wipes, soon counting all 57 of both items in her stock. The letter came a few days later. The DCA was accusing the Alonys of price-gouging during a pandemic. The fine: $28,500 for 57 violations.
“I was in a state of shock. I screamed,” said Jolie. She is fighting the city’s fine. “We can’t afford to pay.”
Thompson Chemists is not alone. The DCA says that it has issued more than 14,600 citations to businesses since pricing rules were tightened with the onset of Covid-19. Many small businesses have so far chosen to settle the charges, including one proprietor who settled for paying an amount far more than his monthly profit rather than face the full fine.
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