Texas AG Establishes Price Gouging Hotline

Price gouging is illegal in Texas. Texas are encouraged to report suspected price gouging to the Texas AG’s Office.

After a disaster, price gouging can occur by unscrupulous people attempting to take advantage of others in the midst of crisis. Texas has codified that price gouging during a disaster violates the Texas Deceptive Trade Practices Act [1]. In fact, many cities and counties have plans that provide ways to ensure prices are controlled during the disaster. [2] Specifically, selling “fuel food, medicine, or another necessity” at an excessive price or demanding such in connection with the necessity is illegal. [3] Though consumers may take action on their own, the County or District Attorney is allowed to prosecute those suspected of price gouging during a disaster. [4] Texas also has the Consumer Protection Division under the umbrella of the Texas Attorney General’s Office. That office helps to investigate and prosecute claims of price gouging.

The Texas AG Consumer Protection Division has established a hotline and email address to support consumers who suspect price gouging. [5]

The AG’s hotline is: 1 (800) 621-0508

The AG’s email is: consumeremergency@oag.texas.gov

Price gouging doesn’t just happen in a disaster zone. There have been cases where states have prosecuted companies that were hundreds of miles away from where the disaster impacted. [6] Everyone is encouraged to remain vigilant.

References:

[1] Tex. Bus. & Com. Code § 17.46(b)(27) (2017).

[2] Tex. Gov. Code §418.106(b)(1) (2017).

[3] Id. 

[4] Tex. Bus. & Com Code § 17.48 (2017).

[5] AG Paxton Announces Consumer Protection Hotline, August 25, 2017, Full Article Here.

[6] See People ex rel. Spitzer v. Weaver Petroleum, Inc., 827 N.Y.S.2d 813 (2006) (evidence of price gouging found at gasoline retailer in New York following Hurricane Katrina). But see White v. R.M. Packer Co., Inc., 635 F.3d 571 (1st Cir. Feb. 18, 2011) (evidence supported a conclusion of “conscious parallelism, but not price gouging).