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Before and after a hurricane approaches, Better Business Bureau receives reports from consumers about high prices for necessary emergency items such as food, water, hotel rooms, ice, gasoline, lumber and equipment. Most state attorneys general offices will initiate a state price-gouging law, which will automatically go into effect during a declared state of emergency in order to prevent businesses from over-charging customers who are preparing to weather a storm or stocking up their vehicles to evacuate.
Price gouging is a term referring to when a seller spikes the prices of goods, services or commodities to a level much higher than is considered reasonable or fair and is considered exploitative, potentially to an unethical extent. The best way to avoid price gouging is to plan ahead and have the necessary supplies you need on hand.
BBB warns businesses not to give in to the temptation to raise prices during a storm, both because it may be illegal to do so and because it erodes marketplace trust. Consumers will remember which businesses took advantage of them during a storm.
Anyone who suspects price gouging during a declared state of emergency should not only report it to Better Business Bureau by filing a complaint, but also to your state attorney general’s office. When reporting a price gouging complaint, try to gather as much information as safely possible and follow these three tips:
- Be as specific about the transaction as possible, including the name and address of the business, names of any employees involved, and information detailing the spike in pricing.
- Gather together documentation supporting the price gouging (receipts, photos of products and their advertised pricing, invoices, etc.)
- Compare pricing of similar products with other sellers in the area as well as online. It’s important to note similarities and differences between brands, size/quantity, manufacturers, model numbers, and prices.
Here are some additional resources from your BBB:
BBB Wise Giving Alliance tips on disaster giving
Avoid “stormchasers” at BBB.org/Storm
Report scams to BBB.org/ScamTracker
Charitable Giving After a Natural Disaster BBB.org/givingaftertragedy
BBB Serving West Florida contributed to this article.
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