In the wake of a natural disaster, prices for essential goods and services often surge. Gasoline, bottled water, hotel rooms, and generators may suddenly cost two or three times their usual rate. This kind of price inflation during a declared emergency isn’t just unethical—it may also be illegal.
Understanding price-gouging in Texas
Price-gouging refers to the practice of raising prices to exploit increased demand during an emergency. Once the governor declares a state of disaster, the Texas Deceptive Trade Practices Act (DTPA) prohibits sellers from imposing “excessive or exorbitant” prices on necessities, including food, fuel, housing, and medical supplies. The intent is to ensure fair access to essentials when communities face extreme hardship.
How the law defines “excessive or exorbitant”
The law doesn’t assign a specific numerical threshold to define price-gouging. Instead, it evaluates whether the price significantly exceeds the item’s typical value in that geographic area. For instance, selling a $1 bottle of water for $10 or charging $300 for a motel room that normally costs $80 could be considered unlawful. The assessment depends on context, market conditions, and the degree of the price increase.
What you can do if you spot price-gouging
You have the option to report suspected price-gouging to the Texas Attorney General’s office. Record the item, price, location, and date. Visual evidence, such as a photograph, can strengthen your report. The state may investigate the business and issue fines. In some instances, you may have grounds to file a civil claim for damages under the DTPA. Preserve any receipts or advertisements that demonstrate the pricing discrepancy.
Price-gouging during a disaster exploits individuals when they are most vulnerable. Consumer protection laws empower you to act when businesses take advantage of crisis situations. By reporting unlawful price increases, you contribute to maintaining fair market practices during emergencies.