Attorney General Liz Murrill has issued a warning to Louisiana residents regarding potential price gouging in the wake of the impending storm, Francine. Price gouging, defined as charging prices for goods or services that exceed those ordinarily charged in the same market area before a state of emergency, is illegal under Louisiana law.
“While we usually see the best in people during a storm, sometimes we also see the worst in people. Price gouging is not only wrong, it’s also illegal. My office will enforce the law to make sure no one is taken advantage of before, during, and after Francine,” said Attorney General Liz Murrill.
Exceptions to this rule include price increases attributable to verifiable regional or national market trends and fluctuations or additional supply costs. The law allows companies to charge more if increased costs are due to suppliers or unrelated market trends.
A violation occurs when there is a "gross disparity" between the price of goods or services and their value measured by pre-emergency prices unless attributable to additional supplier costs. Violations also occur when prices grossly exceed those readily obtainable by other consumers in the trade area without justification from supplier costs.
The Price Gouging Law comes into effect upon declaration of a state of emergency by the governor or parish president and can be renewed for up to 30 days with specific reference in subsequent proclamations.
Goods and services covered under this law apply statewide as indicated by executive orders or proclamations designating affected emergency areas. Legal actions can only be brought by district attorneys, parish attorneys, or the Attorney General (AG). Private causes of action are prohibited; however, victims may have claims under unfair trade practice statutes.
In certain situations, price gouging can be considered a crime if prohibited by an order from the chief law enforcement officer of a political subdivision. Potential remedies include injunctive relief, civil penalties, restitution, and criminal penalties ranging from fines to imprisonment depending on severity and consequences.
Victims or witnesses of potential price gouging are encouraged to contact local law enforcement and file consumer disputes through the Attorney General’s website. Complainants should provide specific evidence such as advertisements and receipts. The AG's Consumer Hotline at (800) 351-4889 is also available for reports.
The Attorney General’s Office reviews every complaint seriously and will pursue civil actions against violators.