Louisiana AG Warns Residents About Price Gouging Ahead of Francine

BATON ROUGE, La. (KPEL News) - Louisiana's Attorney General Liz Murrill is warning Louisiana residents about the possibility of price gouging ahead of Hurricane Francine's landfall in the Bayou State Wednesday. Murrill says the prices charged for goods or services sold cannot exceed the prices ordinarily charged for comparable goods or services in the same market area at and immediately before the state of emergency. This is referred to as ‘price gouging.’

“While we usually see the best in people during a storm, sometimes we also see the worst in people. Price gouging is not only wrong, it’s also illegal. My office will enforce the law to make sure no one is taken advantage of before, during, and after Francine,” said Attorney General Liz Murrill.

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Exceptions:

• Unless the price increases are attributable to verifiable regional or national market trends and fluctuations; or
• Unless the price increases are attributable to additional supply costs.

Murrill's office says it is important to keep in mind that the law allows companies to charge more for products and services when the difference in price is due to increased costs to the supplier or market trends unrelated to the disaster. 

Prima facie proof of a violation (“gross disparity”):

• A violation occurs when there is a gross disparity between the price of the goods or services and their value measured by the price the goods or services were offered for sale by a merchant immediately prior to the onset of the abnormal disruption of the market
  • And the amount charged by the merchant was not attributable to additional costs imposed by its suppliers.
• A violation also occurs when the amount charged grossly exceeds the price at which the same or similar goods or services were readily obtainable by other consumers in the trade area
  • And the amount charged by the merchant was not attributable to additional costs imposed by its suppliers. 

When is Price Gouging Law in effect?

• Upon declaration of a state of emergency made by the governor or by a parish president.
• It can be renewed by specific reference in subsequent proclamations renewing the declared state of emergency, which are effective for up to an additional 30 days each.

What products and services are covered?

• Goods and Services.

What geographical area does it cover?

• This one is statewide per the Governor’s executive orders or proclamations, which indicates the designated emergency area which is or may be affected.

Who can bring an action?

• Only a district attorney, parish attorney, or the AG may bring action.
  • Statute specifically prohibits a private cause of action.
  • Victims may have claims under the unfair trade practice statute.
• In certain situations price gouging is a crime (the chief law enforcement officer of the political subdivision can issue an order prohibiting price gouging).

What should someone do if they are a victim or want to report potential price gouging? 

• The Attorney General's Office recommends that they contact local law enforcement with complaints about price gouging.
• They also recommend that they file a consumer dispute with the AG's office through the Attorney General’s website 

The AG's office says they encourage complainants to provide specific evidence supporting the complaint, including advertisements and receipts of the product or service.

• They can also contact the Attorney General’s Consumer Hotline at (800) 351-4889.