BBB warns that Hurricane Price-Gouging is Illegal

Before and after a hurricane approaches, the Better Business Bureau (BBB) receives reports from consumers about high prices for necessary emergency items such as food, water, hotel rooms, ice, gasoline, lumber, and equipment.  Most state attorneys general offices will initiate a state price-gouging law, which will automatically go into effect during a declared state of emergency in order to prevent businesses from overcharging customers who are preparing to weather a storm or stocking up their vehicles to evacuate.  Price-gouging is a term referring to when a seller spikes the prices of goods, services or commodities to a level much higher than is considered reasonable or fair and is considered exploitative, potentially to an unethical extent. The best way to avoid price-gouging is to plan ahead and have the necessary supplies you need on hand.  BBB warns businesses not to give in to the temptation to raise prices during a storm, both because it may be illegal to do so and because it erodes marketplace trust. Consumers will remember which businesses took advantage of them during a storm. Anyone who suspects price-gouging during a declared state of emergency should not only report it to BBB by filing a complaint but also to your state attorney general’s office.  When reporting a price-gouging complaint, try to gather as much information as safely possible and follow these three tips. Be as specific about the transaction as possible, including the name and address of the business, names of any employees involved, and information detailing the spike in pricing. Gather together documentation supporting the price-gouging (receipts, photos of products and their advertised pricing, invoices, etc.).  Compare the pricing of similar products with other sellers in the area as well as online. It’s important to note similarities and differences between brands, size, quantity, manufacturers, model numbers, and prices.