Price Gouging Laws by State
By Hannah Hilst | Legally reviewed by Melissa Bender, Esq. | Last reviewed February 02, 2024
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People are often left scrambling when disaster strikes. Emergencies like a Category 5 hurricane, pandemic, or an uncontrollable wildfire create dire need. Consumers search for necessities such as drinking water, food, and medical supplies.
Retailers may take advantage of these spikes in demand by charging high prices for necessities. This tactic to maximize profits during an emergency is known as price gouging.
Federal consumer protection laws don't address price gouging, but your state laws might. Price gouging is an unfair or deceptive trade practice in most states.
These laws exist to protect consumers. So, they often open the door to civil penalties, which the state attorney general enforces. Some state laws also add criminal penalties for price gouging violations.
Are High Prices Price Gouging?
No, steep price increases are not always price gouging. Retailers can raise the price of their products as supply and demand change.
People might use the term “price gouging" to describe these new price spikes. But the legal definition is usually more specific to an emergency or a type of good or service. Most laws also consider whether the seller had a good reason to raise prices during the emergency.
How Do State Laws Define Price Gouging?
Price gouging is generally based on average prices in an area before an emergency. A look-back period, such as 30 days, measures how high prices have risen during the emergency.
Price increases of 10% to 15% often count as excessive price hikes. Sellers who raise prices that high without a justifiable reason could face civil or criminal penalties.
Many state laws use nonspecific terms like "gross disparity" instead of an exact percentage. This vague description leaves price gouging open for interpretation. The state's consumer protection authority determines whether prices rose too much.
Example Price Gouging Case
In 2020, the New York attorney general penalized hand sanitizer sellers for price gouging.
The companies sold products for around $20 to $35 before the coronavirus pandemic. During the public health crisis, they charged customers around $80 to $130 for the same products.
This price difference of about 400% during an emergency violated the state's price gouging statute.
State Price Gouging Laws and Penalties
Below are summaries of state laws prohibiting acts of price gouging in the event of a declared emergency. Keep in mind that laws are always subject to change.
States might also have other pricing regulations unrelated to emergencies, such as rent control and prescription drug prices. Antitrust laws also make it illegal for businesses to plan unfair price hikes together.
Summary of the Law: What Is Prohibited and Penalties |
Statute |
|
---|---|---|
Alabama |
|
The Alabama Unconscionable Pricing Act: § 8-31-1, et seq. |
Alaska |
Alaska has no direct law for price gouging in emergencies. Instead, you can file a consumer complaint through the Consumer Protection Unit of the Attorney General's Office. |
n/a |
Arizona |
There is no specific law against price gouging in Arizona. The attorney general may evaluate consumer complaints of unfair trade practices. |
n/a |
Arkansas |
|
The Arkansas Deceptive Trade Practices Act: § 4-88-301, et seq. |
California |
|
California Code PEN § 396 |
Colorado |
|
|
Connecticut |
|
Connecticut General Statutes § 42-230, et seq. |
Delaware |
Delaware does not have a permanent emergency price gouging law. The attorney general investigates consumer complaints of unfair price increases. But Delaware passed a law specific to the coronavirus pandemic (Title 6 § 2528) prohibiting price hikes of 10% or more until the state of emergency ended in 2021. |
n/a |
District of Columbia |
|
District of Columbia Code § 28-4101 to §28-4103 |
Florida |
|
Florida Statutes § 501.160 |
Georgia |
|
The Fair Business Practices Act of 1975: § 10-1-393.4, et seq.; Georgia Code § 10-1-438 |
Hawaii |
|
|
Idaho |
|
|
Illinois |
|
815 ILCS 505/2; Illinois Administrative Code: 465.10, et seq. |
Indiana |
|
Indiana Code § 4-6-9.1-1, et seq. |
Iowa |
|
Iowa Code § 714.16; Iowa Administrative Code (IAC): 61-31.1 (714) |
Kansas |
|
The Kansas Consumer Protection Act: § 50-6,106 |
Kentucky |
|
Kentucky Revised Statutes § 367.372, et seq. |
Louisiana |
|
Louisiana Revised Statutes § 29:732, et seq. |
Maine |
|
Maine Revised Statutes Title 10 § 1105 |
Maryland |
|
Maryland Code § 14-1301 |
Massachusetts |
|
Code of Massachusetts Regulations (CMR): 940 CMR 3.18 (download available) |
Michigan |
|
The Michigan Consumer Protection Act: § 445.903 |
Minnesota |
|
Minnesota Statutes § 325E.80 |
Mississippi |
|
Mississippi Code § 75-24-25 |
Missouri |
|
The Merchandising Practices Act: § 407.020; Missouri Code of State Regulations: 15 CSR 60-8.030 |
Montana |
Though Montana has no specific price gouging law, consumers can file complaints to the Office of Consumer Protection for review. |
n/a |
Nebraska |
Nebraska has no specific price gouging law. But the attorney general may investigate consumer complaints under broader unfair trade practices laws. |
n/a |
Nevada |
|
Nevada Revised Statutes § 598.09235 and § 598.0999 |
New Hampshire |
New Hampshire doesn't have a specific price gouging law, but the attorney general investigates cases of unfair trade practices, which may include price gouging. |
n/a |
New Jersey |
|
The New Jersey Consumer Fraud Act: 56 § 8-107, et seq. |
New Mexico |
New Mexico has no state law directly addressing price gouging during emergencies. But it's illegal under the Unfair Practices Act to take advantage of consumers to a grossly unfair degree, which may include price gouging. |
n/a |
New York |
|
New York General Business Law § 396-r |
North Carolina |
|
North Carolina General Statutes § 75-38 |
North Dakota |
North Dakota doesn't have a direct price gouging law. But you can file a consumer complaint to the Consumer Protection and Antitrust Division. The attorney general may choose to investigate your report. |
n/a |
Ohio |
Ohio has no specific law for price gouging during emergencies. In 2020, senators introduced Senate Bill 301 to advocate for a new price gouging law. Ohio Revised Code § 1345.03 prohibits "unconscionable acts or practices" in a consumer transaction. Interpretations of this law may apply to price gouging. |
n/a |
Oklahoma |
|
The Emergency Price Stabilization Act: 15 OK St. §§ 777.1, et seq. (download title 15 and scroll to subsection 777.1) |
Oregon |
|
Oregon Revised Statutes § 401.960, et seq. |
Pennsylvania |
|
The Price Gouging Act: Title 73 § 232.1, et seq. |
Puerto Rico (U.S. territory) |
|
23 L.P.R.A. § 731 to 745 |
Rhode Island |
|
Rhode Island Statutes § 6-13-21 |
South Carolina |
|
The South Carolina Unfair Trade Practice Act: § 39-5-145 |
South Dakota |
South Dakota has no law against price gouging during emergencies. But you can file a complaint with the attorney general's office and consider private legal action. |
n/a |
Tennessee |
|
The Tennessee Price-Gouging Act of 2002: § 47-18-5101, et seq. |
Texas |
|
The Deceptive Trade Practices Consumer Protection Act: § 17.4627 |
Utah |
|
The Price Controls During Emergencies Act: § 13-41-101, et seq. |
Vermont |
|
Vermont Statutes § 2461d |
Virginia |
|
The Virginia Post-Disaster Anti-Price Gouging Act: § 59.1-525, et seq. |
Washington |
Washington has no price gouging statute. The attorney general has investigated consumer complaints of price gouging. Senate Bill 6699 was introduced in 2021 to prohibit price gouging at the time of disaster, but legislators did not pass it. |
n/a |
West Virginia |
|
The West Virginia Consumer Credit and Protection Act: § 46A-6J-1, et seq. |
Wisconsin |
|
Wisconsin Statutes § 100.305; Wisconsin Administrative Code: ATCP 106.01, et seq. |
Wyoming |
Wyoming doesn't have a specific price gouging statute, but the attorney general filed civil actions for price hikes in 2021, citing unfair practices in the Wyoming Consumer Protection Act. |
n/a |
Note: State laws are always subject to change. Make sure to do your own research or contact a local attorney if you have additional questions about a particular state law.
Call an Attorney Before Filing a Price Gouging Complaint
Essential items such as food, water, and fuel are often hard to find during an emergency or natural disaster. But unreasonable price hikes can put these items out of reach for many who need them.
Consider speaking with a consumer protection attorney or your attorney general's office if you believe a retailer or individual has practiced price gouging. They can help you make your voice heard and, if state law allows, seek private action.
Next Steps
Contact a qualified attorney to assist with any issues related to consumer transactions.
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