3M widens litigation campaign over mask price-gouging
3M has filed another trademark infringement suit against what it’s called a “deplorable pandemic profiteer”, as the multinational seeks to stop the alleged price-gouging of N95 masks amid the COVID-19 outbreak.
In a complaint filed yesterday, April 28, at the US District Court for the Western District of Wisconsin, 3M accused North Carolina company Hulomil of using the 3M trademarks to “perpetrate a false and deceptive price-gouging scheme on unwitting customers and consumers”.
Scott Patella, who is a registered agent of Hulomil, allegedly tried to sell 250,000 N95 masks to Wisconsin state for $3.75 per mask, approximately 250% to 350% above 3M list’s price.
“To make matters worse, Hulomil has attempted to cover up and conceal all details relating to all sales, marketing, and financial information involving price-gouged 3M products and the use of the 3M brand through a written ‘non-disclosure agreement’ (NDA) that Hulomil also provided to the state of Wisconsin,” said the claim.
The NDA purports to bar the disclosure of the identities of anyone involved in any way in the scheme, according to 3M.
“Put simply, Hulomil did everything it could to suggest that Wisconsin would be dealing essentially directly with 3M—and thus to associate 3M with its price gouging,” added the suit.
3M added that price-gouging further strains the limited resources available to combat COVID-19 and wastes procurement officers’ time. The conduct “justifiably has caused public outrage which threatens imminent and irreparable harm to 3M’s brand”, said 3M.
The suit is the latest in 3M’s US-wide litigation campaign against alleged price-gouging.
Earlier this week, LSIPR reported that 3M had secured a restraining order against a New Jersey company it had accused of infringing the 3M trademarks by reselling N95 masks at “grossly inflated” prices amid the pandemic.
3M is also seeking a restraining order in a California case against another company accused of price-gouging.
Earlier this month, 20 attorneys general wrote to 3M, urging the company to do more to combat inflated prices for N95 respirators and other desperately needed personal protective equipment.
“While 3M has committed to maintain the same prices for N95 respirators, others in the marketplace are charging unconscionable prices. Our offices have been flooded with complaints from consumers and healthcare providers regarding excessive prices for PPE and other goods since the beginning of the COVID-19 outbreak,” said the letter.
The attorneys general asked 3M to continue to publish policies prohibiting price gouging by its distributors and cease doing business with those distributors that violate them. They also asked 3M to create a database of its inventory of N95 respirators for government officials and healthcare providers.
Hulomil did not provide a comment at this time.
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