Civic Register
| 9.13.17

Texas AG Goes After Price Gouging During Hurricane Harvey

Join us and tell your reps how you feel!

What’s the story?

Last week Countable asked you whether price gouging during a disaster was un-American or simply the free market at work. You all had a lot of strong feelings about it, and it looks like the Texas Attorney General does, too. He has filed suit against three companies for price gouging in the wake of Hurricane Harvey.

Why does it matter?

When disaster strikes and basic necessities become a matter of life and death, some states have stepped in and created laws to protect consumers. Texas has strict laws that prohibit charging exorbitant prices for necessities like food, drinking water, fuel and clothing during a declared disaster. Now, McClatchy reports that Texas Attorney General Ken Paxton is prosecuting two local gas companies and a hotelier for violating those laws:

"It’s unconscionable that any business would take advantage of Texans at their most vulnerable – those who are displaced from their homes, have limited resources, and are in desperate need of fuel, shelter and the basic necessities of life. Texas has tough price gouging laws, and my office will continue to aggressively investigate and prosecute cases arising from Hurricane Harvey."

One company, Bains Brothers, is accused of charging $6.99 a gallon for unleaded regular gas despite signs at the station advertising it for $3-$4. Another station affiliated with Chevron allegedly was charging $9.99 a gallon.

A local hotel is accused of charging three times their normal room rate the weekend that Hurricane Harvey hit the area.

The state of Florida, which bore the brunt of Hurricane Irma’s landfall on the mainland, also has a law prohibiting price hiking of essentials during an official emergency. According to McClatchy, the Florida attorney general’s office received over 8,000 price gouging complaints over the last week, though there’s been no word if the office will pursue a case, like in Texas.

What do you think?

Do you support laws preventing price gouging during natural disasters or not? Were you in one of the areas hit by Hurricane Harvey or Hurricane Irma? Did you see price gouging happen? What do you hope happens with the Texas suit?

Tell us in the comments what you think, then use the Take Action button to tell your reps!

— Asha Sanaker

(Photo Credit: brownpau via Flickr / Creative Commons)

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