New York Tree Company Penalized for Storm Price Gouging

A New York judge has ordered an upstate tree removal company to stop trying to collect payments from customers state officials say were gouged for work after Tropical Storm Irene in 2011.

Attorney General Eric Schneiderman says the decision came in a lawsuit his office filed against American Tree Co. of Lake George.

The suit under New York’s price gouging law claims the company charged as much as $10,000 per tree, added excessive fees and misled consumers.

In addition to the ban on collections, Schneiderman says the judge imposed a $25,000 penalty on the company.

American Tree had argued the emergency justified the higher prices.