Price gouging is charging excessive prices for essential goods or services during an emergency or market disruption under laws that restrict such conduct.
Why price gouging matters
Price gouging matters because emergency conditions can leave consumers with limited choices for food, fuel, lodging, repairs, medical supplies, or other necessities. Many states restrict extreme price increases during declared emergencies or similar triggering events.
The definition, trigger, covered goods, and permitted price changes vary by jurisdiction.
Where price gouging appears
Price gouging appears in consumer complaints, state attorney general enforcement, emergency declarations, disaster-response rules, retailer investigations, and civil penalty proceedings.
Practical example
After a storm, a seller sharply increases the price of bottled water in an affected area. State price-gouging rules may determine whether that increase is unlawful.
How price gouging differs from nearby terms
Price gouging differs from ordinary high pricing because it usually depends on an emergency trigger, covered goods or services, and a legally excessive price increase. It differs from false advertising because the concern is the price level, not necessarily a misleading statement.
Related terms
Quick knowledge check
Why does price-gouging law often depend on an emergency or triggering event?