Pa. AG settles with Allentown motel over Hurricane Sandy price gouging

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Attorney General Kathleen Kane

Pennsylvania Attorney Kathleen Kane today resolved a price-gouging case that was filed against an Allentown motel operator for their improper conduct during Hurricane Sandy.

Prosecutors say that the Akshay LLC, Rodeway Inn owners, Dinesh and Anil Panwala, charged excessive prices in violation of the Pennsylvania Price Gouging Act for motel rooms during Governor Corbett’s declared state of disaster emergency, Oct. 26, 2012 until Jan. 15, 2013.

The owners are accused of renting rooms in excess of 20 percent of the average price of rooms rented seven days prior to the disaster declaration as Hurricane Sandy approached Pennsylvania. During the course of the investigation, the Bureau of Consumer Protection uncovered 120 instances of alleged price gouging by the motel owners.

As part of the settlement, the motel and its owners will refrain from violating Pennsylvania’s Consumer Protection Law and the Price Gouging Act in the future and pay total restitution of $10,042 to eligible consumers, as well as civil penalties to the Commonwealth.

Consumers who believe they are victims of these business practices can call the Bureau of Consumer Protection at 1-800-441-2555 or file a complaint online at