Updated: Lexington company sells masks without profit after price gouging accusation
A Lexington-based uniform company has decided not to make any money off the N95 respirator masks it sells after it was accused of price-gouging by two Arizona congressmen.
Galls, a uniform, equipment and gear store that sells to law enforcement and public service professionals, had been accused of spiking its N95 mask prices by 500 percent to 600 percent by Arizona Reps. Greg Stanton and Ruben Galleg. Stanton and Galleg made the accusation in a letter to U.S. Attorney General William Barr Wednesday.
“We at Galls will not profit from the sale of these protective masks to our first responders and public safety partners,” the company said in a statement Friday, indicating it would not add a markup on the price it pays suppliers. “We are making this commitment for as long as it takes to see our country through this crisis, and urge other companies to join us in this pledge.”
Galls provides masks to Phoenix’s police and fire departments, according to the letter posted online by Scripps.
“This is price gouging, plain and simple, and we respectfully request the Department of Justice and Federal Trade Commission open investigations immediately,” the representatives said in the letter.
The representatives did not name Galls in their letter but have since confirmed they were referring to Galls, according to multiple media outlets in Arizona.
“In addition, this vendor is requiring significant pre-payment for the masks rather than the standard practice of billing upon receipt which leaves our first responders at further risk – and unable to turn to a different vendor – if the equipment is not delivered on time,” the letter said.
Stanton and Galleg said they understand that some departments could run out of masks in just days or weeks.
Galls said in a statement that any price increase reflected increased costs for Galls to acquire the masks. Galls also said it has had to prepay to secure masks, so it has made its customers do the same.
“The price Galls is charged for these masks, sourced from China, is extraordinarily high due to the unprecedented demand for these items and the lack of supply,” Galls said in a statement.
“Profiting from the coronavirus pandemic – especially in a manner that places our first responders in harm’s way – is morally indefensible, and we commend the president for recently issuing an executive order to combat price gouging,” the letter said.
This story was originally published April 3, 2020 at 11:12 AM.