IN THE CIRCUIT COURT OF THE FIRST JUDICIAL CIRCUIT, IN AND FOR SANTA ROSA COUNTY, FLORIDA. Plaintiffs, CASE NO. :

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1 IN THE CIRCUIT COURT OF THE FIRST JUDICIAL CIRCUIT, IN AND FOR SANTA ROSA COUNTY, FLORIDA STATE OF FLORIDA, DEPARTMENT OF LEGAL AFFAIRS, OFFICE OF THE ATTORNEY GENERAL, and STATE ATTORNEY CURTIS, vs. Plaintiffs, CASE NO. : CAMP OUT, INC., a foreign profit corporation, and GREGORY SCIOTTO, Defendants. / COMPLAINT FOR INJUNCTION, DAMAGES, CIVIL PENALTIES AND OTHER STATUTORY RELIEF This is an action for injunctive relief, declaratory judgment, damages, costs, attorneys fees, and penalties brought under the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Florida Statutes (2003). The State of Florida, Department of Legal Affairs, Office of the Attorney General (Attorney General), sues the Defendants, and alleges: THE PARTIES 1. The Office of the Attorney General, Department of Legal Affairs, is the statutorily empowered enforcing authority for Florida s Deceptive and Unfair Trade Practices Act. 2. Curtis A. Golden is the State Attorney for the First Judicial Circuit. Santa Rosa County is in the First Judicial Circuit. 3. Section (8), Florida Statutes (2003) specifically empowers the Attorney General to enforce the prohibition against unconscionable pricing of commodities during an official state of emergency in Florida.

2 4. Section (8), Florida Statutes (2003) specifically empowers the State Attorney for each Circuit to enforce the prohibition against unconscionable pricing of commodities during an official state of emergency in the State Attorney s Circuit. 5. Attorney General Charlie Crist has reviewed this matter and determined that this enforcement action serves the public interest. 6. The Defendants, Camp Out, Inc., a Foreign Profit Corporation, and Gregory Sciotto are engaged in trade and commerce within Florida, within the meaning of Section (8), Florida Statutes (2003). They are in the retail business, selling among other things, gas cans and generators. nd 7. Camp Out, Inc. is located at SW 132 Avenue, Princeton, Florida Gregory Sciotto is a part owner of Camp Out, Inc. He resides at S.W. 249 Street, Homestead, Florida Camp Out, Inc. and Gregory Sciotto offer goods, services, and other things of value to consumers of the State of Florida. During the State of Emergency declared on September 10, 2004 by Governor Bush to protect the citizens of the State of Florida Camp Out, Inc. and Gregory Sciotto offered to sell gas cans and generators to the people of Santa Rosa County in the First Judicial Circuit. JURISDICTION AND VENUE 10. Section , Florida Statutes (2004) grants this court jurisdiction over this action for equitable and legal relief. 11. This court has personal jurisdiction over Camp Out, Inc. and Gregory Sciotto because they do business in Florida and are located in Florida. -2-

3 12. This court has subject matter jurisdiction. This action seeks equitable relief, a declaratory judgment, penalties, damages, costs and attorney s fees. DEFENDANTS UNLAWFUL COURSE OF BUSINESS 13. On September 10, 2004, the Governor of the State of Florida, Jeb Bush, signed Executive Order , declaring a sixty day State of Emergency throughout the State of Florida. The Executive Order declared Hurricane Ivan alone and in combination with the destruction by Hurricanes Charley and Frances, threatens the State of Florida with yet another catastrophic disaster. 14. Section 11 of Executive Order provides: In accordance with Sections (2) and (3), Florida Statutes, I hereby place all persons on notice that it is unlawful for any person to rent or sell, or offer to rent or sell at an unconscionable price, any essential equipment, services, or supplies whose consumption or use is necessary because of the emergency. Such services shall include, without limiting the generality of the foregoing, any rental of hotel, motel, or other transient lodging facilities, and any rental of storage facilities. In accordance with Sections (1)(b), Florida Statutes, any price exceeding the average price for such essential equipment, services, or supplies for the thirty (30) days immediately proceeding the date of this Executive Order shall create a presumption that the price is unconscionable unless such increase is caused by actual costs incurred in connection with such essential equipment, services, or supplies, or is caused by national or international economic trends. (Executive Order No , attached Exhibit A ). 15. On September 16, 2004 Hurricane Ivan struck Northwest Florida and Alabama as a Category 4 hurricane with destructive winds exceeding 120 miles an hour. The winds and accompanying tidal surge wreaked havoc in Escambia, Okaloosa, and Santa Rosa Counties. Homes were destroyed. People were killed. Hospitals and nursing homes were critically damaged. Thousands of people lost and remain without electricity or -3-

4 water. Without electricity and water they have no refrigeration for food, no power to operate health care devices, or even sanitation in many communities. 16. During the State of Emergency generators and gas cans are necessary commodities due to the loss of power caused by the hurricane. 17. Generators are necessary to provide power for homes and businesses that may be without power for weeks to come as crews struggle to repair snapped poles, broken lines, and damage power plants. 18. Cans to transport fuel for the generators are essential to operation of the generator. Without a gas can a generator quickly becomes a 300 pound paperweight. 19. During the State of Emergency, Camp Out, Inc. and Gregory Sciotto have engaged, and continue to engage in unconscionable pricing practices, and unconscionable, deceptive and unfair acts and practices in trade and commerce by charging unconscionable prices for products including generators and gas cans. 20. On September 19 and 20, 2004 Camp Out, Inc. and Gregory Sciotto offered supplies including generators and gas cans for sale on a Santa Rosa roadside. 21. They were operating from and using a motorhome home pulling two trailers and a white one ton Dodge pickup truck pulling a black trailer. Gregory Sciotto was in charge of the sales operation and assisted by two employees. The group had a significant quantity of generators and gas cans and appeared intent on remaining in Okaloosa County. 22. They offered the products at prices that were grossly disparate from the average price for the same or similar products in the area in the thirty days preceding declaration of the State of Emergency. -4-

5 23. The goods they offered for sale included red five gallon metal gas cans manufactured by Blitz, Inc. The selling price of $ was written on the cans in black marker. 24. Suggested retail prices for similar cans range between $41.28 and $ These are goods that typically sell at a significant discount to suggested retail price. 25. Camp Out, Inc. and Gregory Sciotto were also offering an ONAN gas generators, Model PRO 4000E, 4 KW marked with a selling price of $1, The manufacturer s suggested retail price for this model is approximately $1, Camp Out, Inc. and Gregory Sciotto were also offering a DEK generator, model #EPGD40E (4KW) marked with a selling price of $ The average cost for this generator is approximately $ The Defendants price represents a mark up profit of over 200%. 29. Camp Out, Inc. and Gregory Sciotto were also offering a DEK generator, Model #EPGD50E (5 KW) marked with a selling price of $1, The average cost for this generator is approximately $ The Defendants price represents a mark up profit of over 300%. 31. Generators typically sell at a discount from manufacturer s suggested retail price. They are not typically sold at profits of 200% or more. 32. Camp Out, Inc. and Gregory Sciotto were also offering a TITAN gas generators, model #8000 (8KW) marked with a selling price of $2, The a manufactured suggested retail price for that model is $ Generators typically sell at a discount from manufacturer s suggested retail price. They are not typically sold at profits of 200% or more. -5-

6 35. Representatives of the Okaloosa County Sheriff and the Office of the Attorney General have advised Camp Out, Inc. and Gregory Sciotto that the prices they are charging for generators and gas cans violate section , Florida Statues (2003). 36. Camp Out, Inc. and Gregory Sciotto refuse to stop their practice of selling generators and gas cans for prices that are grossly disparate from the price for the same or similar products in the Santa Rosa area before the State of Emergency. COUNT I - PRICE GOUGING. 37. The Attorney General and the State Attorney re-allege and incorporates by reference paragraphs 1 through Florida s Deceptive and Unfair Trade Practices Act, in Section (1), Florida Statutes (2003), declares unconscionable acts in the conduct of any trade or commerce unlawful. 39. Florida s Price Gouging law, Section (2), Florida Statutes (2003) makes it unlawful for: a person or her or his agent or employee to rent or sell or offer to rent or sell at an unconscionable price within the area for which the state of emergency is declared, any essential commodity including, but not limited to, supplies, services, provisions, or equipment that is necessary for consumption or use as a direct result of the emergency. This prohibition remains in effect until the declaration expires or is terminated. 40. "Commodity" means any goods, services, materials, merchandise, supplies, equipment, resources, or other article of commerce, and includes, without limitation, food, water, ice, chemicals, petroleum products, and lumber necessary for consumption or use as a direct result of the emergency. Sec (1)(a), Fla. Stat. (2003). -6-

7 41. Generators and gas cans are commodities during the State of Emergency. 42. The price for a commodity is prima facie unconscionable if the amount charged grossly exceeds the average price at which the same or similar commodity was readily obtainable in the trade area during the 30 days immediately prior to a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the sale of the commodity or national or international market trends (1)(b), Fla. Stat. (2003) 43. The prices for generators and gas cans charged by Camp Out, Inc. and Gregory Sciotto are unconscionable. They grossly exceed the price at which the same goods were readily obtainable in the Santa Rosa County trade area in the 30 days immediately prior to the declaration of the State of Emergency. 44. The conduct of Camp Out, Inc. and Gregory Sciotto charging unconscionable prices for generators and gas cans and their refusal to cease when advised that they were violating the law demonstrate their regular practice is to violate Florida s price gouging Unfair and Deceptive Trade Practices laws. 45. Because Camp Out, Inc. and Gregory Sciotto are operating out of a trailer and a motorhome they can readily change location, avoiding efforts to enforce the law. 46. Unless this court enjoins Camp Out, Inc. and Gregory Sciotto from charging unconscionable prices during the State of Emergency their continued activities will result in irreparable injury to the consuming public. WHEREFORE, the State of Florida, Office of the Attorney General, Department of Legal Affairs, and State Attorney Curtis A. Golden pray for judgement: -7-

8 A. Permanently enjoining Camp Out, Inc. and Gregory Sciotto from charging or attempting to charge unconscionable prices for commodities during the State of Emergency. More specifically, the Department of Legal Affairs and State Attorney Curtis A. Golden ask the court to temporarily and permanently enjoin Camp Out, Inc. and Gregory Sciotto from selling generators or gas cans for prices that exceed the manufacturers suggested retail price and that they have and provide on demand by any representative of the Office of the Attorney General, State Attorney Curtis A. Golden, or the Sheriff of Okaloosa County documents establishing either the manufacturer s suggested retail price or the cost of the goods that they are selling. B. Awarding the Department of Legal Affairs and State Attorney Curtis A. Golden actual damages and interest on behalf of consumers injured by the unfair competition or deceptive or unfair acts or practices of Defendants in accordance with section (1)(c), Florida Statutes (2003); C. Assessing against Defendants Camp Out, Inc. and Gregory Sciotto civil penalties in the amount of one thousand dollars ($1,000) for each violation of section , Florida Statutes (2003) in accordance with section , Florida Statutes (2003); D. Assessing civil penalties in the amount of ten thousand dollars ($10,000) for each violation of Chapter 501, Part II, pursuant to section , Florida Statutes (2003) and civil penalties in the amount of fifteen thousand dollars ($15,000) for each violation victimizing a senior citizen for each violation of Chapter 501, Part II, pursuant to section , Florida Statutes (2003); E. Awarding reasonable attorney s fees and costs to the Department of Legal Affairs and State Attorney Curtis A. Golden pursuant to sections , and , Florida -8-

9 Statutes (2003); F. Awarding restitution for consumers injured by the unlawful actions of Camp Out, Inc. and Gregory Sciotto; G. Requiring that Defendants disgorge all revenue generated as a result of the unconscionable, unfair and deceptive practices set forth in this complaint; H. Declaring the practices described in this complaint unlawful; and I. Granting such other relief as this court deems just and proper. COUNT II UNFAIR AND DECEPTIVE TRADE PRACTICES. 47. The Attorney General and State Attorney Curtis A. Golden re-allege and incorporate by reference paragraphs 1 through Section (1), Florida Statutes (2003), declares unconscionable acts or practices in the conduct of any trade or commerce to be unlawful. 49. Exploiting the desperate need for products like generators and gas cans needed to relieve the damage caused by the wide spread devastation of a major hurricane to extract prices grossly in excess of the value or normal charge for a service is an unconscionable act and practice. 50. Camp Out, Inc. and Gregory Sciotto have committed acts or practices in trade or commerce that shock the conscience, engaged in representations, acts, practices or omissions that are material, and that are likely to mislead consumers acting reasonably under the circumstances; or they have committed acts or practices in trade or commerce which offend established public policy and are unethical, oppressive, unscrupulous or -9-

10 substantially injurious to consumers. Thus, they have engaged in unfair or deceptive acts or practices in the conduct of trade or commerce in violation of section (1), Florida Statutes (2003). 51. The acts and practices of Camp Out, Inc. and Gregory Sciotto have injured and will likely continue to injure and prejudice the public. 52. Camp Out, Inc. and Gregory Sciotto have willfully engaged in the acts and practices when they knew or should have known that said acts and practices were unfair or deceptive or prohibited by rule. 53. Unless the court enjoins Camp Out, Inc. and Gregory Sciotto from engaging further in the acts and practices described in this complaint their continued activities will irreparably injure the public. There is no adequate remedy at law for the injuries. RELIEF REQUESTED WHEREFORE, the State of Florida, Office of the Attorney General, Department of Legal Affairs, and State Attorney Curtis A. Golden pray for judgement: A. Permanently enjoining Camp Out, Inc. and Gregory Sciotto from charging or attempting to charge unconscionable prices for goods including generators and gas cans. B. Awarding the Department of Legal Affairs and State Attorney Curtis A. Golden actual damages and interest on behalf of consumers injured by the unfair competition or deceptive or unfair acts or practices of Defendants in accordance with section (1)(c), Florida Statutes (2003); C. Assessing civil penalties in the amount of ten thousand dollars ($10,000) for each violation of Chapter 501, Part II, pursuant to section , Florida Statutes (2003) and civil -10-

11 penalties in the amount of fifteen thousand dollars ($15,000) for each violation victimizing a senior citizen for each violation of Chapter 501, Part II, pursuant to section , Florida Statutes (2003); D. Awarding reasonable attorney s fees and costs to the Department of Legal Affairs and State Attorney Curtis A. Golden pursuant to sections , and , Florida Statutes (2003); E. Awarding restitution for consumers injured by the unlawful actions of Camp Out, Inc. and Gregory Sciotto; F. Requiring that Camp Out, Inc. and Gregory Sciotto disgorge all revenue generated as a result of the unconscionable, unfair and deceptive practices set forth in this complaint; G. Declaring the practices described in this complaint unlawful; and H. Granting such other relief as this court deems just and proper. Respectfully Submitted, CHARLES J. CRIST, JR Attorney General, State of Florida CURTIS A. GOLDEN State Attorney, First Judicial Circuit John D.C. Newton, II Florida Bar No Senior Assistant Attorney General Office of the Attorney General Economic Crimes Division Civil Rights Division PL-01, The Capitol Tallahassee, Florida (850) phone (850) fax John A. Molchan Florida Bar No Assistant State Attorney Office of the State Attorney 5185 Elmira Milton, Florida /