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 Louisiana, price gouging is regulated under the state's Consumer Protection laws. Specifically, Louisiana Revised Statutes Annotated (La. R.S.) 29:732 prohibits price gouging during a state of emergency. When the governor or the parish president declares a state of emergency, the statute prohibits the increase of prices above the pre-emergency levels unless the increase can be attributed to a national or regional market trend, or the price can be directly correlated to additional costs imposed by the supplier or because of additional risks taken by the seller. The law is designed to prevent businesses from unfairly raising prices on essential goods and services such as food, fuel, hotel rooms, and other necessities during a crisis. Violations of this statute can result in penalties including fines and possible imprisonment, as well as civil remedies. The Louisiana Attorney General's Office is typically responsible for enforcing these regulations and can take action against businesses that engage in price gouging.