# Price gouging, profiteering and the law **URL:** \ **Category:** Factual Questions\ **Created:** [September 16, 2001, 1:22am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910 "2001-09-16T01:22:58Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Fenris](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fenris/32/498_2.png) [@Fenris](https://boards.straightdope.com/u/Fenris)\ **Post date:** [September 16, 2001, 1:22am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910/1 "2001-09-16T01:22:58Z")
Ok, humor me for a sec. I don’t get something. I’m _not_ supporting price-gougers who seek to profit off of a tragedy. I think they’re morally bankrupt, inhuman swine. But… …how can it be illegal? (Ok, because we passed laws saying it was. What’s the legal principle behind those laws? Is it as simple as “War-profiteers are scum and should be jailed” or is there more to it?) If I own a convienience store or a gas station, it’s my gas, right? Moral issues aside, shouldn’t I be able to charge what the market will bear (as long as I’m not price-fixing with other gas station owners?) What if I say “I want to charge $8.00/gallon for gas” and the government says “That’s price gouging.” Can I just say “Screw this, I ain’t selling anything.”, or do I have to sell what I got at the mandated prices? For that matter, how is price gouging/profiteering defined in the law (I imagine it’s different from state to state, but there’s gotta be a general working definition. **DSYoungEsq**? **MintyGreen**? **Jodi**? Anyone with a legal background got some insights? Fenris ---
**Author:** ![filmyak](https://avatars.discourse-cdn.com/v4/letter/f/94ad74/32.png) [@filmyak](https://boards.straightdope.com/u/filmyak)\ **Post date:** [September 16, 2001, 2:21am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910/2 "2001-09-16T02:21:18Z")
I know it was a major issue after Hurricane Andrew hit Florida. Forget the “price gouging” for truly nonessential items like American flags. Folks there were pricegauging for water, ice, medical supplies, generators, etc. This, when people had no choice but to buy these items to survive. ## As for legal ramifications now, and for gasoline… I have no idea. Weatherman: “…and the five day forecast for Afghanistan is two days.” ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [September 16, 2001, 3:15am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910/3 "2001-09-16T03:15:26Z")
While this topic may have been brought up in other posts on other boards, I, too have wondered about this. In Ohio, there were 4-6 or so gas stations which have been charged with violations of Ohio law this past week. The law is this > [@](#): > > The Ohio Consumer Sales Practices Act addresses incidences of unconscionable consumer sales practices in Ohio Revised Code section 1345.03. “No supplier shall commit an unconscionable act or practice in connection with a consumer transaction. Such an unconscionable act or practice by a supplier violates this section whether it occurs before, during, or after the transaction.” One assumes there are state laws such as ours in other states. But I think the wording seems so _nebulous_. Where’s the ACLU when you need them? ---
**Author:** ![YWalker](https://avatars.discourse-cdn.com/v4/letter/y/6f9a4e/32.png) [@YWalker](https://boards.straightdope.com/u/YWalker)\ **Post date:** [September 16, 2001, 3:16am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910/4 "2001-09-16T03:16:46Z")
Well, I have no legal knowledge whatsoever. However, I’ll take a shot on how what they are doing could possibly be found to be illegal: In the event of a disaster of some sort, the vendors may for all intents and purposes become a sort of local monopoly, by virtue of the fact that people no longer have free choice to travel elsewhere for goods or services. For example, after a hurricane, gasoline may not be available, roads may not be travelable, and alternative stores may not be available because they were destroyed. Contrary to popular opinion, the US government doesn’t outright ban all monopolies; utilities (well, except in deregulated areas) have traditionally been regulated monopolies. They aren’t allowed to charge whatever the traffic will bear; their prices are regulated by a utilities commission. So, it seems to me that if circumstances create temporary monopolies within a jurisdiction, there might be some precedent for allowing that jurisdiction to regulate what prices can be charged. I got to see some of this firsthand in Charlotte, NC. I went home for my 10 year high school reunion the weekend Hurricane Hugo hit the Carolinas. The area was badly hit, and a lot of the necessities like gasoline, milk, bread, etc. were hard to come by. I saw on the news a report of some SOB who drove a bread delivery truck who stopped to make his delivery at a convenience store. He saw that people were clamoring to get the bread he was about to deliver, so instead of delivering it into the store, he stood up on the back of the truck and auctioned it off to the folks standing around waiting for it. I think they tried to prosecute him on something, but I left town a day or so later, and never did find out how it turned out. I hope he at least lost his job. ---
**Author:** ![Duck\_Duck\_Goose](https://avatars.discourse-cdn.com/v4/letter/d/50afbb/32.png) [@Duck\_Duck\_Goose](https://boards.straightdope.com/u/Duck_Duck_Goose)\ **Post date:** [September 16, 2001, 3:35am UTC](https://boards.straightdope.com/t/price-gouging-profiteering-and-the-law/81910/5 "2001-09-16T03:35:38Z")
Hey, I get to post this twice in one day! 😃 The Illinois Attorney General’s office discovered, much to its dismay, that price-gouging isn’t exactly illegal in Illinois. So they’ve filed a “violation of consumer protection laws” lawsuit against the Casey General Store gas gougers in Peoria and other places. And AG Jim Ryan (who incidentally is running for governor) promises that just as soon as he gets a minute, he’ll change the law. Really. [http://www.sj-r.com/news/friday/o.htm](http://www.sj-r.com/news/friday/o.htm) > [@](#): > > State trying to make price gouging a violation of law > By TIM LANDIS > BUSINESS EDITOR > > Odd as it might sound in a week that saw gasoline hit $5 a gallon in some areas of Illinois, price gouging is not a specific violation of state law. > > The ILLINOIS ATTORNEY GENERAL’S OFFICE is considering an emergency rule that would clarify the definition of price gouging and make it an explicit violation of state consumer-protection laws. > > A lawsuit filed against Casey’s General Stores Inc. this week accused the convenience-store chain of violating the Illinois Consumer Fraud and Deceptive Business Practices Act. However, there is no mention of price gouging in the act. > > The lawsuit against Casey’s alleges 13 outlets in central and southern Illinois sharply raised prices in the hours following Tuesday’s terrorist attacks in Washington and New York. In some cases, prices went as high as $4 and $5 a gallon. > > Penalties for violation of the act include injunctive relief, restitution and civil fines of at least $50,000. General chitchat about what’s going on elsewhere. [http://stacks.msnbc.com/news/627457\_asp.htm](http://stacks.msnbc.com/news/627457_asp.htm)