Price Gouge Amid Disaster Deceptive Trade Practice
The act establishes that a person engages in a deceptive trade practice if the person, within 180 days following the declaration of a disaster or disaster emergency by the president of the United States or the governor of the state and in the geographic area for which the disaster was declared, sells, offers for sale, provides, or offers to provide any of the following at a price so excessive as to amount to price gouging:
- Building materials;
- Consumer food items;
- Emergency supplies;
- Fuel;
- Medical supplies;
- Other necessities;
- Repair or reconstruction services;
- Transportation, freight, or storage services; or
- Services used in an emergency cleanup.
A price is not unreasonably excessive if the seller can prove that, due to events that gave rise to the disaster declaration, the price is attributable to additional costs imposed on the seller by the seller's supplier or suppliers or other direct costs of providing the good or service sold or offered for sale.
(Note: This summary applies to this bill as enacted.)