The Tennessee attorney general has concluded the investigation of two brothers accused of hoarding hand sanitizer and other supplies in Hixson to resell at inflated prices as the coronavirus pandemic spread.
Under the terms of an agreement, Matt Colvin and his brother Noah Colvin are prohibited from selling emergency or medical supplies during a crisis at prices "grossly in excess" of what those supplies would normally cost. The investigation will conclude without any civil charges or other penalties "in order to avoid the expense associated with litigation," according to a release from the attorney general's office.
"Disrupting necessary supplies during an unprecedented pandemic is a serious offense," Tennessee Attorney General Herbert Slatery wrote in the statement. "It became clear during our investigation that the Colvins realized this, and their prompt cooperation and donation led to an outcome that actually benefited some consumers."
It is illegal for anyone to engage in price gouging during a declared emergency, but the agreement means the Colvins could face additional penalties for violating it, said Samantha Fisher, director of communications for the Tennessee attorney general.
"The biggest difference is that, unlike the regular citizen, the Colvins' violation of this law will result in contempt of court," she said.
Matt Colvin, 36, was featured in the New York Times on March 14 in a story about the massive stash of hand sanitizer, antibacterial wipes and face masks he and his 21-year-old brother picked up in bulk in early March to resell for a profit on his Amazon store as coronavirus concerns grew.
When Amazon shut him down on March 5 to prevent him from cashing in on a public health crisis, Colvin thought he'd become the face of frustrated online sellers who are stuck with in-demand inventory they can't move. Instead, he became the face of profiteering in a time of fear, the target of death threats, pranks and a relentless barrage of hate both online and off.
"At the end of the day, I'm sorry I bought all this stuff, not just because of how it's affected me but because of how things have changed since I bought it," Colvin said as the investigation unfolded in mid-March. "I know I'm splitting hairs here, but I wasn't selling this stuff after March 5. If I had known how things would be now, I wouldn't have touched any of this. There's no way."
Under Tennessee law, the Attorney General's Office can put a stop to price gouging and seek refunds for consumers. The courts also may impose civil penalties against price gougers for every violation, up to $1,000 per violation, or $10,000 for practices targeting the elderly, and seek consumer restitution.
Colvin declined to comment Tuesday on the resolution of the case.
In its announcement, the Attorney General's Office noted the Colvins' cooperation with the investigation. The Colvins surrendered all their supplies, including about 17,000 bottles of hand sanitizer. They also agreed to distribute a portion of the supplies to officials in Kentucky, where they had bought some of the inventory.
A local church took the supplies and distributed them to first responders - the Chattanooga Police Department, Hamilton County Sheriff's Office, Chattanooga Fire Department and others. The church offered to buy the supplies, but Matt Colvin didn't want the money, said an associate pastor, who asked not to be named.
Contact Mary Fortune at mfortune@timesfreepress.com or 423-757-6653. Follow her on Twitter at @maryfortune.