New York Attorney General Letitia James has led a coalition of 15 attorneys general in advocating for a national ban on price gouging. In a letter addressed to Congressional leaders, the coalition highlighted the absence of federal legislation to prevent businesses from inflating prices on essential goods during emergencies. They argued that such a ban would empower the federal government to address price gouging beyond the reach of individual states and enable collaboration between state and federal authorities.
"Businesses should never be able to hike prices during an emergency just to increase their profits," stated Attorney General James. She emphasized her office's commitment to holding companies accountable when they exploit disruptions by raising prices on necessities, aiming to protect consumers' finances.
The proposed bans would allow businesses to adjust prices to cover costs but not to profit excessively during emergencies. The coalition outlined several benefits of prohibiting price gouging: encouraging production without unjustified price hikes, preventing long-term reputational damage for businesses, discouraging hoarding behavior among consumers, and protecting against monopolistic practices.
The letter referenced recent events like the COVID-19 pandemic and the war in Ukraine as instances where national supply chains were disrupted, creating opportunities for price gouging beyond individual states' control. The coalition argued that a federal ban would enhance existing state measures against such practices.
Attorney General James has been active in addressing price gouging at the state level, securing settlements with companies that raised prices illegally during emergencies. Notable actions include distributing baby formula in New York as part of a settlement with Walgreens and recovering funds from Quality King for overpricing Lysol products.
In March 2023, she proposed new rules aimed at facilitating investigations into price gouging by her office. Throughout various crises, including the pandemic and declared disasters, she has issued consumer warnings against excessive pricing on essential supplies.
Joining Attorney General James in this initiative are attorneys general from California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, and the District of Columbia.