Price Gouging Law Still in Effect for Gas, AG Cooper Reminds Consumers, Businesses
Consumers can report possible gouging at ncdoj.gov or 1-877-5-NO-SCAM
November 5, 2016
Raleigh, NC - - (November 1, 2016) - - North Carolina’s law against price gouging remains in effect including for gasoline and consumers should continue to report gouging if they see it, Attorney General Roy Cooper said Tuesday.
Cooper’s office is continuing to investigate multiple allegations of price gouging thanks to hundreds of reports from consumers.
“Consumers are our eyes and ears on the ground and we use their complaints to investigate possible price gouging,” Cooper said. “If you spot excessive prices during this time of crisis please let us know.”
Cooper shared the reminder today following an explosion in Alabama along the main gas pipeline that brings fuel to North Carolina. The explosion closed the pipeline and could limit supplies of gasoline.
A previous shutdown of the same gas pipeline in September triggered North Carolina’s law against price gouging. North Carolina’s anti-price gouging law was triggered again in October by Hurricane Matthew and remains in effect statewide.
The Attorney General’s Office is currently investigating businesses for possible price gouging related to Hurricane Matthew as well as for alleged gas price gouging due to problems with the gas pipeline in September.
What is price gouging?
Price gouging—or charging too much in times of crisis—is against North Carolina law when a disaster, an emergency or an abnormal market disruption for critical goods and services is declared or proclaimed.
The law applies to all levels of the supply chain from the manufacturer to the distributor to the retailer.
The price gouging law is currently in effect statewide due to a state of emergency declared when Hurricane Matthew hit.
How does the law define price gouging?
North Carolina law (Chapter 75-38) defines price gouging as charging “a price that is unreasonably excessive under the circumstances.” There is no set price or percentage increase defined in the law. If a price appears to be excessive, report it and we will look into it.
How can I report price gouging?
You can report price gouging three ways:
• File a complaint online at ncdoj.gov.
• Call 1-877-5-NO-SCAM (toll-free within North Carolina) or 919-716-6000.
• Mail us a complaint to:
Consumer Protection Division
Attorney General's Office
Mail Service Center 9001
Raleigh, NC 27699-9001
What should I report?
Report as much information as you have. It’s helpful if you can provide receipts if you made a purchase, or photos or screenshots of prices you see posted on signs or online.
How do we investigate price gouging?
Our Consumer Protection Division follows up on complaints of potential price gouging to determine if the law has been violated. We use information provided by consumers, including first-hand reports, receipts, photos and other evidence. We contact businesses about reports we get and also look at the costs businesses are charged by their suppliers.
What happens to price gougers?
Courts can fine price gougers up to $5,000 for each violation under North Carolina law. According to our state Constitution, all fines go to support the public schools. We also try to win refunds for consumers whenever possible.
In 2008, North Carolina faced a similar gas crisis when Gulf Coast refineries shut down. With the price gouging law in effect, Cooper took action and won $71,000 in consumer refunds, energy assistance and fines from 14 gas stations.
“Most businesses do right by their communities but some try to take advantage of a crisis to rip off their customers,” Cooper said. “We want businesses and consumers to know the price gouging law remains in effect.”
Information source: Office of the Attorney General, State of North Carolina