Gouging Disasters
By Bill MimsJune 1 marks the official start of Atlantic Hurricane season. It serves as a reminder to us all to be prepared for unexpected emergencies.
As Hurricane Ike was approaching the Gulf Coast last September, Gov. Tim Kaine declared a state of emergency. Virginia’s Post-Disaster Anti-Price Gouging Act was then triggered, protecting consumers from “unconscionable” prices for necessary goods and services.
Some gas stations were accused of price gouging. Our office worked with the Virginia Department of Agriculture and Consumer Services to investigate.
Gas stations in Radford and Dublin, among several others, came under scrutiny. For example, in the day immediately before the emergency was declared, one station had been charging $3.59 for a regular gallon of gas. Then, after the state of emergency was declared, it charged $5.79 for the same regular gallon of gas – a 61 percent increase.
Our office recently reached a price gouging settlement with the company. They agreed to provide their customers with restitution, and make a contribution to the American Red Cross Disaster Relief Fund.
The economic principles of supply and demand generally should govern how prices are set for all goods and services. However, those who would take advantage of Virginians by price gouging for gasoline or other necessities simply because of an emergency situation will not be tolerated.
We encourage businesses to take extra care in setting their prices on necessary goods and services during declared states of emergency. Consumers who have reason to believe they are victims of price gouging are encouraged to file complaints with the Virginia Office of Consumer Affairs.
Consumer protection is an important statutory duty of the Office of the Attorney General, and our staff can help. In an age of increased consumer issues, we all must continue to be educated and vigilant.