Nevada County Picayune and Gurdon Times Newspaper Archive

AG's Office Issues Warning

Since the snow and ice storms hit in late December, there have been rumors and allegations of price gouging.

According to Act 376 of 1997, businesses are prohibited from charging more than 10 percent above the pre-disaster price of goods or services.

"During a state of emergency," said Attorney General Mark Pryor, "it is unthinkable the unscrupulous would take advantage of those in need, but it happens."

It is because of those unscrupulous people the law was passed in 1997.

The law is broad in its scope, Pryor said. This was done to try to make sure everything anyone needed during an emergency situation was covered under it. This includes food, water, flashlights, batteries, blankets, nails, hammers, medicine, bandages, lumber and fuel.

The law is engaged when either the governor or president declares a state of emergency. It remains in effect for at least 30 days, and can be extended another 30 days by the local governing body if deemed necessary to protect the lives, property or welfare of the citizens.

According to Pryor, while the law is in effect, businesses may lawfully charge up to 10 percent more than before the disaster, if they can successfully establish the higher price is directly attributable to additional costs imposed on the supplier or the result of additional costs for labor or materials used to provide the goods or services.

In such a limited situation he said, the business may charge no more than 10 percent above the total cost to the business, plus the above-mentioned markup.

There are strong penalties for breaking the law, as it is a violation of the Deceptive Trade Practices Act, which can result in injunctive relief, restitution to consumers, costs, attorneys' fees and civil penalties up to $10,000 per violation.

It is a class A misdemeanor, carrying a one-year jail term, a fine of $1,000 or both.

Pryor said before anyone agrees to purchase goods or services in a disaster situation they need to do some comparison shopping.

It's best to avoid "drive-by" quotes from door-to-door solicitors, and when possible, deal with established reputable businesses in the community, and always get estimates and price quotes in writing.

Anyone believing a business may have or be engaging in price gouging should contact the Attorney General's Office at 200 Tower Building, 323 Center Street, Little Rock, AR 72201, or by calling (501) 682-2341, or 1-800-482-8982 for the speech and hearing impaired.

Mike Teague, with the AG's office, said they are interested in getting written complaints if people believe price gouging has occurred.

However, he said, those making the complaints should have some sort of proof, such as receipts.

While there were rumors of price gouging occurring during the disaster, Teague said no arrests have been made, nor have any charges been filed.

The complaint form, for those filing one, requires the complainant's name, address, home and work phone number, the firm/individual the complaint is against, their addresses and phone numbers, the date of the transaction, if a contract was signed, the age of the person making the complaint, product or services involved, if an attorney has been contacted, if court action is pending, the estimated costs involved, if the company in question has been contacted, the complainant's view of what a fair resolution would be, and an explanation of the circumstances surrounding the complaint, with copies of any contracts, sales slips, canceled checks, advertisements, correspondence or any other related documents.