Protecting Consumers: North Carolina's Price Gouging Law in Response to State of Emergency
North Carolina has activated its price gouging law in response to the state of emergency declared by Gov. Josh Stein ahead of an upcoming winter storm. Attorney General Jeff Jackson announced the enforcement of the law, which prohibits businesses and individuals from charging unreasonably high prices for goods or services during emergencies. The goal is to protect residents from facing inflated costs during severe weather events, allowing them to focus on safety without financial concerns.
When a state of emergency is declared, sellers are not allowed to charge prices that are considered unreasonably excessive given the circumstances. The law permits reasonable price adjustments to account for higher operating expenses or supply disruptions. However, businesses cannot raise prices solely for profit motives and must transparently communicate any legitimate price increases to customers before completing a transaction.
If residents suspect they have encountered price gouging, they can report it to the North Carolina Department of Justice by calling 1-877-5-NO-SCAM or visiting the department's website. Recent enforcement actions, such as the lawsuit against individuals who violated the price gouging law after Hurricane Helene, demonstrate the state's commitment to upholding consumer protection regulations. In that case, a Hendersonville couple paid a significant sum for tree removal services that were never completed, leading to additional property damage. The defendants were subsequently prohibited from engaging in contracting or landscaping work, required to cancel existing contracts, and ordered to reimburse affected customers.
The price gouging law will remain in effect for the duration of the state of emergency, ensuring that businesses adhere to fair pricing practices and consumers are shielded from exploitative pricing strategies during critical situations.