Should Ebay put a stop to price gouging on N95 masks ?

[nostalgicbrewpub]

Due to the Novel Coronavirus, there has been a huge demand for N95 masks. Some unscrupulous sellers are price gouging these masks, asking over 4 times the retail price. Such behavior will cause hoarding , people rushing to brick-n-mortar stores and online suppliers to buy up these masks,  just so they can hawk it on Ebay for absurd markups. This causes problems for the average person who wants to buy a mask for personal use. Ebay takes down auctions that violate certain ethical and or legal guidelines.

Just to be clear, I am not saying Ebay should stop sellers from hawking N95 masks, only to prevent those sellers who engage in price gouging.

Health professions have warned that emptying the shelves of these masks, which is greatly exacerbated when people can figure they can get rich quick by price gouging, is putting health professionals at risk due to shortage of the masks. In Singapore the government has cracked down on price gougers.

I would link to Ebay auctions of sellers price gouging but I don't know if that is allowed.

[domin-tomas]

This isn't price gouging, there is no mandate to were the people must or have to wear these. There is no pandemic of a great proportion to were you would need these. So, if there is no mandate or need that would benefit everybody like water or gas then this is not price gouging. PLUS I HEARD FROM DOCTORS AND DISEASE SPECIALIST ON TV THAT THEY REALLY DON'T WORK.

[fuzzface50]

apparently the 9 box lot wasn't paid for and I was notified that it got relisted.

you can never be sure why people have big lots of certain items or where they got them from or how long they had them. .  when my dad died a little over l a year ago he still had 22 boxes of masks left.  His buddy was a doctor( brain surgeon) and he got them thru him dirt cheap so he brought a lifetime supply. that is how my dad worked, brought everything in big bulk to save. 

I take after him at times.  my wife developed a problem and started living in gloves quite a few years ago. I ended up buying over 50,000 latex gloves in one month from 2 different auction sites that was selling Wisconsin surplus  items.  got them cheap. 

[tapi-szem]

I believe the laws against price gouging clearly define the concept, which is extremely overpricing daily necessities in an emergency situation when supplies may be tight. This would, at minimum, require a declaration of state of emergency, and there is none in the US right now.

Yes, some people are stockpiling masks which means that most retailers are out of stock and most wholesalers are only selling reorders to established accounts in limited quantities while manufacturers are also filling up state strategic stockpiles (just in case there is an emergency down the road). This puts small users (such as small medical offices, contractors, labs, etc.) in a difficult situation and allows people who still have product to charge pretty much what they want (and what people will pay). But this is more like the hot toy at Christmas situation and not Hurricane Irma.

BTW: manufacturers say that the demand has also driven up the price of raw materials so the price of masks will go up.

[johnrj1226]

@nostalgicbrewpub 

One robin doesn't make springtime.

[moondogblues]

" This situation is more akin to hoarding food and water during emergencies. There are State laws barring this practice, which is considered price gouging."

Unless you are referring to people trying to SELL (at inflated prices) things that they have stockpiled before an 'emergency' then it is NOT illegal by any means to prepare and be ready for an emergency. In fact, after the Katrina fiasco authorities advised that poeple have two or three MONTHS worth of supplies, just in case.

I live out in the woods, in earthquake country...I am prepared. Some may call me a hoarder, or a survivalist, so be it. I will, however, not be a drain on scarce resources if the worst happens.

[itsjustasprain]

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@nostalgicbrewpub wrote:

Most people know what price gouging is. We are not talking about a 20% or 30% markup here. Depending on the number of pieces, price gouging markup can be anywhere from 100% or 200% or well over. There is no exact figure as to what is fair, but people know when something is being price gouged.

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So getting back to the original question - what is the price point at which sellers of these masks are price gouging? This would be the price below which you would not believe them to be price gouging. What is that number and how do you determine it? Again - please be specific with the example that you yourself brought up so that we know what the price gouging limit is on these masks. That way sellers will know what number they must stay below.

Saying 'most people know what price gouging is' will not cut it. You need to make a more specific statement that others can then toe the line that you have decided on.

[greatmidwestcoin]

If you believe eBay sellers are gouging try looking on Amazon.  They have $300-$500 shipping charges. No kidding.  In either event, why buy online at high prices for these masks when your local hardware store carries them at their regular price. I called around today and bought two 3M 20 piece boxes for less than a buck a piece. Even the big box stores still have them reasonably priced. Let them gouge.

[ypdc_dennis]

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@tapi-szem wrote:

I believe the laws against price gouging clearly define the concept, which is extremely overpricing daily necessities in an emergency situation when supplies may be tight. This would, at minimum, require a declaration of state of emergency, and there is none in the US right now.

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Precisely.   No need for price controls as a mask is not a necessity in North America.

USA - 53 infected, 6 recovered, no deaths

Canada - 11 infected, 3 recovered, no deaths

Mexico - 0 cases

https://www.worldometers.info/coronavirus/

https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

[johnrj1226]

@itsjustasprain 

1.  Each US state has  there own "price gouging"  laws, some have none.

2. Most of these laws  are effective  after a declared emergency until then  price levels are based on what a willing buyer is willing to pay aka "free market". 

3.  Some states benchmark that a price  of 10%  over the previous accepted price level prior to the "emergency" is considered gouging.  This price level is determined by the individual states.   Wonder  what  magic formula they use - e.g. recently  saw a  price of a dozen eggs price at 40 cents to a $1.29 around our "lil" county of a 100K.

In a nutshell - no way can eBay or any other on line selling venue  control  sellers price levels.

[inhawaii]

No. Supply and demand. God bless the USA. 

[livecheapordie]

Rising prices in an emergency situation are actually are a good thing, because they let everyone know that this item is in high demand or in low supply or both.  Higher prices give users an incentive to use this item only when absolutely necessary.  Higher prices discourage people from buying and hoarding more than they need, thus leaving more available for everyone else.  Higher prices let producers know that they can make more money by increasing output, making more product available to everyone.  Higher prices encourage innovation.  Because prices convey important information they are one of the benefits of a free market.

[outforarip01]

Amazon is warning sellers not to price gouge and are banning them from selling on their site and removing them. EBay needs to do the same. It's getting ridiculous. How can people be so greedy in a time of a crisis. That would be like a doctor picking and choosing who he wants to work on and who he doesn't or charging people r price hiking for their services during a time of crisis. It should be illegal as a matter of fact 5 people in China for arrested for price gouging recently in the last few days.

[coolections]

@outforarip01 

Amazon is doing the right thing and hopefully Ebay will follow. I feel sorry for those who think it is OK to take advantage like this at a time of crises.

[varebelrose]

Some may call it "Price gouging", I call it a **bleep** good thing to incentivize needed supplies to an area that needs them.

1. Disaster
2. Supply is low
3. Price goes up
4. Suppliers are incentivised to bring in more supplies
5. More supplies show up
6. Demand decreases
7. Prices drop
8. Supplies are widely available at a reasonable cost

"Price gouging" laws cut off the chain at step 3 and it never gets to step 8. Charities will still bring in supplies, but the "profiteers" are the ones driving true recovery.

YMMV.

[inhawaii]

What exactly is price gouging?  Give us the numbers please? How does one determine what price gouging is? What's the formula to figure out if someone is price gouging is?  There better be a formula if they're arresting people for it.  Please tell us...