Seems to me it was Florida after the big Hurricane. Some television show did an expose’
of AAAA electric where the owners motto was “Each service call is worth $2,000.00”
Forcing his service guys to run up the bill by simple overcharging and downright fraud.
I know they couldn’t get him on the price gouging because he had been in business for long before the hurricane, and was charging outrageous prices even then. I am fairly sure the company was listed as AAAA something presumably so it would be first in the Yellow book listing.
Just something I latched onto today, I am not good with Goggle, my searches came up with nothing. Would like to know if this guy ever got nailed, or did he just close up shop and disappear to scam other innocent people?
Nailed for what?
It’s not illegal to charge high prices, even outrageously high compared to other sellers. The buyer always has the option of taking his business to another seller. Smart buyers get multiple bids on big things like electrical work.
Unless he did things like charge for work that wasn’t actually done, or charge for electrical devices that were not actually installed, he didn’t do anything illegal. Unethical maybe, but not illegal.
There cannot be “price gouging” unless the mark, or victim, is forced, usually by a governmental entity, to purchace the goods or services being “gouged.” A private business can charge whatever they feel the market will bear. If customers voluntarily pay the price the propietor is asking then, by definition, it is not “gouging”.
In the case of mandatory car insurance, for instance, the public has no alternative but to buy insurance at the inflated prices the agencies are charging, or face the consequences of the law. The insurance companies, knowing the public is compelled to buy insurance, act in concert to keep the prices unrealistically high, knowing the public has choice.
Various governmental jurisdictions authorise a “Natural Monopoly” for providing certain services, with the justification that competition would be counter-productive. The result is, if you wish to buy electricity, for example, you pay whatever the Power Company says you should. There is supposed to be oversight by a Public Utilities Commission, or some similar entity, but these are frequently in the pocket of the Utility Companies.
Yeah, that’s not true. Price gouging is illegal in many states, and it usually to prevent consumers from being taken advantage of during emergencies or natural disasters. A simple trip to wikipedia should clear that up for you.
Hey, now, I am just looking for anyone who remembers the show, and where I can find
any info. Gouging was specifically mentioned I believe mostly because it was going on for so long before the hurricane, (I think it was Andrew, but then again) that they couldn’t use that, but someone had turned him in for it as such.
There were several interviews with ex-employees who mentioned fraud and deceptive practices as well.
While I suppose that something mandatory like insurance could lead to price gouging, I can categorically tell you that car insurance, at least in the states of Illinois, Indiana, Ohio, Wisconsin, and Iowa, is not price gouged. I worked for an auto insurance company and was privy to the loss ratios for all of our states - and in general our loss ratio was at or above 100% - all profit was from investing/the time lapse between us earning your premium and you having a loss. Now, our goal was a loss ratio below 100%, but the years I worked there it rarely was below that, and never below the mid-90s, so our profit + money to pay salaries/expenses was anywhere from 3-4% to maybe 8 or 9% in our best year ever - if that is price gouging then I would hate to see what you think of Jewellers or even the grocery store.