Hoarding of scarce material during pandemic is federal offense

by: Philip H. Hilder

The U.S.  Department of Justice recently established the Hoarding and Price Gouging Task Force. Prosecution punishes hoarding as defined as not allowing a person to accumulate: 1. in excess of the reasonable of  demand of business, personal or home consumption or 2) for the purpose of resale at amounts in excess of prevailing market prices, materials which have been designated by the president as “Scarce Materials”. Title 50 USC 4512 on March 23, 2020 President Trump issued executive order 13910 to prevent hoarding of health and medical resources necessary to respond the spread of COVID-19  (See Executive Order 13910)

The Department of Health and Human Services (HHS) issued the Notice of Designation of Scarce Materials and Threatened Materials subject to COVID-19 hoarding prevention measures. (See HHS Designation) The overall authority to designate Scarce Materials comes under the Defense Protection act of 1950. If additional questions arise relating to investigation or prosecution under this provision, contact our office www.hilderlaws.com