LANSING, MI - Michigan Attorney General Dana Nessel is investigating an Ann Arbor-area cleaning supply business on suspicion of price gouging in sales of hand sanitizer amid the coronavirus outbreak.

Nessel’s office on Friday, March 27 petitioned for investigative subpoenas requiring A.M. Cleaning & Supplies LLC, 4659 Washtenaw Ave. in Pittsfield Township, to provide information related to product sales. Washtenaw County Circuit Judge David Swartz has approved the request, Nessel announced Monday.

Eleven people filed complaints alleging store owner Anthony Marshall raised prices on products such as Purell hand sanitizer eight-fold, according to the attorney general’s petition. On March 7, the store posted a message on Twitter advertising Purell at $60 for a 12-ounce bottle, $40 for an 8-ounce bottle and $20 for a 4-ounce bottle, according to the petition.

The petition also showed that on March 3, the store tweeted that the same-sized bottles were priced at $7.50, $5 and $2.50, respectively.

If proven, the price hikes would be a violation of the Michigan Consumer Protection Act for “charging the consumer a price that is grossly in excess of the price at which similar property or services are sold,” according to the attorney general’s office.

“Legal recourse is not the preferred option, but my office will take any necessary steps to determine whether reports of price-gouging are valid,” Nessel said in a statement. “Businesses must play by the rules and if a company is breaking the law, we will hold it accountable. Michigan consumers looking to buy products they need or to protect their health during this pandemic will not be subjected to excessively high prices.”

A message seeking comment was left with Marshall.

In a letter to the attorney general’s office included as an exhibit in Nessel’s court filing, Marshall claimed a photo posted to social media misrepresented the actual pricing of his products.

“I decided to break apart the 8 packs and sell them at their individual marked prices of $7.50, $5.00, and $2.50, but the photo in question was taken when the shelves were in the middle of being restocked and it is misleading of actual prices because the bottles in the photo LOOK LIKE they are on the shelf as being sold individually, but for 8 pack pricing,” Marshal wrote. “Once the shelf was fully restocked, the price tags were changed to reflect their individual prices of $7.50, $5.00, and $2.50, therefore, the re-posting of actual prices. I want to make it clear that I was not trying to sell individual bottles of Purell at the prices listed in the photo and that the negative reviews and complaints that you received have come from online people, that have not been actual customers and are only responding based on that 1 misleading photo.”

Also included as an exhibit in Nessel’s court filing was a photo of a receipt provided by a customer who purchased a 12-ounce bottle for $36. Based on similar complaints and conflicting statements from the store, Nessel’s office sent the store a cease and desist letter on March 11.

After Nessel warned Michigan businesses on March 12 that coronavirus-related price-gouging was unacceptable, her office has received more than 2,000 complaints statewide. That includes 1,121 complaints made through the Consumer Protection tip line and just under 1,000 filed online, the attorney general’s office said.

Consumers can file a complaint online or by calling the Consumer Protection tip line, 877-765-8388. Hours of operation are between 8:30 a.m. and 4:30 p.m. Monday through Friday.

Read all of MLive’s coverage on the coronavirus outbreak at mlive.com/coronavirus.

Additional information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus.

CORONAVIRUS PREVENTION TIPS

In addition to washing hands regularly and not touching your face, officials recommend practicing social distancing, assuming anyone may be carrying the virus. Health officials say you should be staying at least 6 feet away from others and working from home, if possible. Carry hand sanitizer with you, and use disinfecting wipes or disinfecting spray cleaners on frequently-touched surfaces in your home ( door handles, faucets, countertops) and when you go into places like stores.

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