Potential for Price Gouging Following Severe Weather

Contributor: Lauren Sisler
Updated: 1/23 5:42 pm

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Birmingham, AL-Alabama Gov. Robert Bentley has a declared a State of Emergency for all 67 Alabama counties as a result of severe weather.

By declaring a State of Emergency, the governor invokes Alabama’s price gouging law, which makes it unlawful for anyone to raise prices on commodities or lodging by more than 25 percent during the declared state of emergency.

To avoid violating Alabama's price gouging law, figure the price charged for each of the previous 30 days. Add the 30 daily prices, divide by 30, and multiply the price by .25, or 25 percent, to figure the maximum price increase allowed for any one day. The exception is if a wholesale price increases by more than 25 percent and merchants have no choice but to pass along the price increase.

The fine for violating Alabama's price gouging law can be up to $1,000 per incident. Those who willfully and continually violate the law can be banned from doing business in Alabama.

An emergency declaration also authorizes the Alabama Emergency Management Agency and other state agencies to assist communities and make the appropriate assessments of damage.

Alabama Department of Agriculture and Industries food safety inspectors already have been deployed to the storm-damaged areas. Inspectors are on the ground accessing damage and power outages at retail food establishments to ensure the safety of food products.Food safety inspectors make sure that any products that have been compromised due to lack of refrigeration and /or damage are removed from the marketplace.

ARA will compile information related to this weather emergency for its members and post under Disasters in the Emergency Preparedness area of the News section of www.alabamaretail.org.
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