Justice Department, FTC warn consumers of fraud, price gouging risks ahead of Hurricane Milton

• As Hurricane Milton approaches landfall in the U.S, the Biden administration is warning consumers against fraud and price gouging.
• By noon on Wednesday, nearly a quarter of gas stations in Florida were out of gas, according to Patrick De Haan, an oil and gas analyst who tracks pump supply.

As Hurricane Milton approached landfall in western Florida on Wednesday, the Biden administration warned consumers and businesses of the heightened risk of potential fraud, price gouging and collusion that accompanies major natural disasters.

"Wrongdoers are looking to exploit opportunities and victims of natural disasters for their own personal gain," U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana said in a statement.

Federal Trade Commission chair Lina Khan said the FTC is "hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm's way — from hotels to groceries to gas."

By noon ET on Wednesday, nearly a quarter of gas stations in Florida were out of gas, according to Patrick De Haan, an oil and gas analyst who tracks pump supply.

"Companies are on notice: do not use the hurricane as an excuse to exploit people through illegal behavior," said Manish Kumar, a deputy assistant attorney general in the Justice Department's Antitrust Division.

Most states have laws intended to curb price gouging, with many of these restrictions tied to declared states of emergency.

Several major airlines and retailers have told CNBC in recent days that they froze prices in advance of the storm.

"Once we have any emergency situation, all of our prices are freeze," Kelly Mayhall, president of Home Depot's Southern division told CNBC Wednesday.

Amid a historic hurricane season, the