Price gouging occurs when retailers or other sellers take advantage of the increased demand and insufficient supply of goods and services—often commodities and basic necessities—following a natural disaster, war, civil unrest, or other event, and increase prices beyond a fair or reasonable amount.
In Alabama, price gouging is illegal and is specifically addressed under the Alabama Deceptive Trade Practices Act. The law prohibits the unconscionable pricing of items for sale or rent after the governor declares a state of emergency. According to the Act, a price is considered unconscionable if it exceeds 25% of the average price charged in the same area within the last 30 days before the declaration of the state of emergency, unless the increase can be attributed to reasonable costs incurred in connection with the sale of the item. The Alabama Attorney General's Office is responsible for enforcing this law, and violators can face penalties including fines and injunctions against further violations. Consumers who encounter price gouging can report it to the Attorney General's Office for investigation and potential action.