Price Gouging

AG goes after gas stations in wake of Hurricane Harvey

Under the Texas Deceptive Trade Practices Act, businesses are not allowed to dramatically raise prices on gasoline, food and other necessities when a state of emergency has been declared.

The idea is that those suffering should not be made to suffer even more. The law allows the state attorney general to go after any business that engages in such price gouging—at up to $20,000 for each violation.

But that’s not enough to deter some who are eager for quick gains. They probably figure there’s not much risk of getting caught and keep their eyes on the potential reward.

Well, for 127 gas station operators in Texas, the reward might be too little to justify the risk.

On Monday, Attorney General Ken Paxton announced he was taking those stations to court after complaints they were charging $3.99 a gallon or more in the days following Hurricane Harvey.

“At the outset of Harvey, I made it clear that my office would not tolerate price gouging of vulnerable Texans by any individuals or businesses looking to profit from the hurricane,” Paxton said in a news release.

Paxton said his office received around 5,500 complaints of price gouging related to the hurricane. A lot of those contained photos. Many of the 127 gas stations under fire are in the Dallas-Fort Worth area.

We’ll see how this plays out. One thing for sure. It may have been difficult to prove a case of price gouging just a few years ago. But in these days of smartphones everybody has a camera with them at all times. And they aren’t shy about using them.

Word to the wise: The reward is no longer worth the risk. Play fair with your customers. Or you just might find the AG at your door.