The CNMI Attorney General’s Office consumer counsel Mike Ernest yesterday said a full-time investigator will conduct random checks.
“We will be conducting investigation and we are discouraging grocers and storeowners to stop selling stale products such as milk, medicines, baby formula and other items that babies and the senior citizens consume,” said Ernest, the guest speaker of the Saipan Chamber of Commerce during its meeting at Palms Resort Saipan.
The price mark need not be put on each product or each item, but it should be in a conspicuous place near the item for sale, he added.
The penalty for selling expired and stale items range is a $2,000 fine or a six-month jail term, or both for each violation.
If, for example, a grocer is caught selling five cans of expired milk or other food items during five days, the grocer will be fined for each can or box and for each day he was caught displaying the stale products
Ernest said the AG’s office receives at least two complaints each week regarding consumer protection issues but none have reached the courts.
The AGO had no consumer counsel for the past three years.
Ernest assumed the post in July 2009.
“We have the interest of consumers in mind. Now, we are going to enforce the laws if we have to and prosecute violators,” he said.
He said the CNMI is the only U.S. jurisdiction that allows expired items to be sold in stores.
“But the expired items must be separated from the new items with marking and they must be sold at no more than half the original price,” Ernest added.
Food stamps, auto shops
Ernest said the AGO will also investigate allegations that the food stamps are being used to purchase beer and cigarettes.
“We received reports about this matter during summer last year yet and we are going to work on it very soon,” he said.
Auto shops in the island, too, are not exempted from the crackdown.
Ernest said some consumers have complained that some auto shops recommend costly repairs on their cars that were not really necessary.
Ernest said they are going to look into this matter.
Consumer protection
The Commonwealth Disaster Price Freeze Act of 1996 prohibits any price increases in basic needs such as gas and fuel, food, bedding, clothing, ice and water, and other basic goods upon the declaration of the governor following a typhoon condition 2 or tropical storm condition 1.
Ernest said that the price freeze could last up to five days.
“We don’t wish for calamities and this is something we hope the governor does not have to declare,” he added.
He said consumers are also protected against unfair business practices.
The AGO, he added, will prosecute businessmen and merchants who will engage in price monopoly and price fixing.
The Consumer Protection Act is another law that aims to shield consumers from illegal practices such as discrimination.
“The reason why we require price marking is to prevent different customers being charged different prices for the same merchandise,” Ernest said.
