LITTLE ROCK – Attorney General Tim Griffin issued a statement today alerting Arkansans of post-storm rebuilding scams and informing businesses that the prohibitions on price gouging in Act 367 of 1997 are now in effect. This follows Governor Sarah Huckabee Sanders’s declaration of a state of emergency in Executive Order 24-07, issued on May 26.
"My prayers continue for everyone affected by this weekend’s storms, especially those who lost loved ones. Arkansans always show kindness and compassion to others when storms strike our state. Yet there are unscrupulous people who will try to take advantage of our neighbors in their desperate time of need," Griffin stated.
Griffin advised residents with storm damage to contact their insurance company before paying any company or individual a deposit. "Post-storm scammers will offer quick repair jobs for an immediate deposit and may even claim that insurance will reimburse the purchaser. I encourage Arkansans not to feel pressured into immediate solutions that appear too good to be true."
The emergency declaration has activated the state's anti-price gouging law, which prohibits businesses from charging more than 10 percent above the pre-disaster price of goods or services. "Price gouging will not be tolerated as Arkansas recovers, and I will bring the full power of my office to bear on anyone who violates our law," Griffin emphasized.
Act 367 of 1997 is triggered whenever a state of emergency is declared by federal, state, or local governments. A violation of Act 376 is also a violation of the Deceptive Trade Practices Act, carrying a fine of up to $10,000. The law bans businesses from charging more than 10 percent above the pre-disaster price for goods or services.
The ban on price gouging remains effective for at least 30 days and can be extended another 30 days if necessary to protect Arkansans’ lives, property, or welfare. For home repairs, the law remains in effect for 180 days.
Arkansans wishing to report concerns about this Consumer Alert or seeking more information should contact the Arkansas Attorney General’s Office by calling (501) 682-2007, emailing consumer@arkansasag.gov, or visiting www.ArkansasAG.gov.
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