How to Protect Yourself: Price Gouging After a Natural Disaster
Those experiencing a state of emergency, whether it be a hurricane, flood, or other natural disaster, can sometimes be targeted by bad actors looking to take advantage. One way that scammers attempt to victimize those who are in the path of the natural disaster is by price gouging. Learn more about what price gouging is, how to prevent yourself from being a victim of price gouging, and how to report price gouging that you may witness during a state of emergency by reviewing the information and links below.
Following Hurricane Andrew in 1992, the State of Florida enacted a law that prohibits "price gouging" after a declared state of emergency.
During a declared state of emergency, the law bans unconscionable increases in prices in the rental or sale of essential commodities, which would include lumber, ice, water, chemicals, generators, shelter and other necessary goods and services once a state of emergency has been declared by the governor. It is also unlawful to raise hotel rental rates or housing lease rates under Florida’s price gouging laws.
The Florida Office of the Attorney General investigates every allegation of price gouging. Pursuant to Florida’s price gouging laws, the Office of the Attorney General compares the reported price of the commodity or service during the declared state of emergency to the average price charged over the 30-day period prior to the state of emergency. If there is a “gross disparity” between the prior price and the current charge, it is considered price gouging. It is not considered price gouging if the seller can justify the current price by showing an increase in the price of their supplies or market trends. Additionally, the price gouging statute does not apply to non-essential luxury goods like alcoholic beverages and cigarettes.
Violators of the price gouging statute are subject to civil penalties of $1,000 per violation and up to a total of $25,000 for multiple violations committed in a single 24-hour period. In addition to the civil penalties for price gouging, state law criminalizes the sale of goods and services to the public without possession of an occupational license. Violators of the law can be charged with a second-degree misdemeanor.
