Category Archives: Price Gouging

Texas AG Issues Notifications Following Price Gouging During Harvey

Texas AG Issues Formal Demands Following Price Gouging During Harvey

The Texas Attorney General has notified 127 gas stations of price gouging during Hurricane Harvey.

During Hurricane Harvey, there was a lot of alleged price gouging of necessities. This not only impacted the costal area, but also more interior areas that never saw a direct impact from the storm. On October 30, 2017, The Attorney General’s Consumer Protection Division sent notices to 127 gas-stations in Texas that charged in excess of $3.99 per gallon of gasoline. The notice provided to each business gives the individuals a chance to resolve the issue before proceeding to the litigation stage. This aren’t the only business likely to receive notices though. The AG’s Office is still investigating complaints received from consumers during this timeframe.

The Texas Attorney General’s Office is using the Texas Deceptive Trade Practices Act (or “DTPA” for short) to go after price gouging. The DTPA is what consumers and the state often use to control unscrupulous businesses in Texas. The DTPA allows for stiff civil penalties and injunctive relief to prevent business from maintaining deceptive or unfair trade practices. Price Gouging is only one of many practices prohibited. Often, this list of prohibited practices is called simply “the laundry list,” because there are so many things.

Read the Full AG’s Press Release Here

Emergency Management Law’s Post on the AG’s Established Price Gouging Hotline

Photo courtesy of the Department of Defense.

Texas AG Establishes Price Gouging Hotline

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).