Six lodging businesses targeted for alleged price gouging

ROSWELL — New Mexico Attorney General Raul Torrez reported recently that some lodging businesses in Roswell and Artesia are being investigated for potential incidents of price gouging aimed toward people ordered to evacuate from the Ruidoso area because of impending danger from the South Fork and Salt fires that began in mid-June.

Six of these businesses received ceaseand- desist letters from the New Mexico Department of Justice (NMDOJ). Five are located in Roswell and one is in Artesia. Holiday Inn, Baymont by Wyndham, Days Inn by Wyndham, Clarion Inn and Suites and Home2 Suites by Hilton in Roswell received this type of correspondence. The La Quinta Inn and Suites by Wyndham in Artesia also received such letters, according to the NMDOJ.

Cease-and-desist notices demand businesses suspected of this type of illegal activity to stop it. These letters also provide specific information about the state’s Unfair Practices Act and explain how the recipient appears to have violated it, based on preliminary investigation.

NMDOJ has received several complaints that hotel bookings were canceled “with little to no explanation, to then be rebooked at a higher price.” Some anonymous complaints also described “blatant upcharging of hotel rooms due to the Ruidoso fires,” the agency noted in an announcement to area media.

Further inquiries will include looking at the practices of not only the local operators of lodging properties, but also the national and international corporations that own these chains to obtain “explanations that would justify these kinds of practices,” Torrez noted.

New Mexico Statutes Chapter 57, Article 12, refers to unconscionable trade practices “in which the lease, rental, or loan, of any goods or services results in a gross disparity between the value received by a person and the price paid.”

Not delivering quality or quantity of goods or services for which the purchaser contracted, as well as offering goods or services with the intent of not supplying them in “the quantity requested by the potential buyer to the extent of stock available,” are also detailed in this state statute, according to Torrez.

As of Wednesday, the NMDOJ has received nearly a dozen complaints about possible price gouging incidents related to the fires, which killed two people, damaged 1,400 structures and burned a total of more than 25,000 acres.

Those subjected to what they believe were price-gouging incidents continue to be urged to report what happened to the NMDOJ.

The state will work with these businesses to ensure the evacuees affected are paid back. The businesses would also be asked to sign “binding contracts” that promise adherence to the state’s Unfair Practices Act.

Businesses that don’t attempt to provide relief to those customers or pledge to conduct business lawfully will be civilly prosecuted by the NMDOJ in the local court system.

Torrez said each violation of the act can result in a civil penalty of up to $5,000.

Those selling fuel, food or providing other retail goods and services could be among those suspected of taking advantage of victims of the South Fork and Salt fires.

Along with the NMDOJ’s continuing interest in receiving information from potential victims of these unlawful business practices, it’s also seeking to hear from employees of businesses where such activities might have occurred because their knowledge could aid in the investigation process.

He also pointed out that the NMDOJ plans to focus on the thousands of Ruidoso- area fire victims as they rebuild their lives. The possibility of other types of businesses attempting to target those affected by this emergency, such as those who sell construction materials and contractors who don’t fulfill their promises, will exist, Torrez added.

He expects that more lodging businesses will be put on notice, too.

Report such possible incidents to the NMDOJ online at nmdoj.gov/get-help and complete the online complaint form, or call 505-490-4060, and select option “3.”