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 Massachusetts, price gouging is regulated under the state's consumer protection laws, specifically under Massachusetts General Laws Chapter 93A, Section 2(c). This law prohibits unfair or deceptive acts or practices in the conduct of any trade or commerce. While the statute does not explicitly define price gouging, it has been interpreted to include taking advantage of market conditions to increase prices excessively during emergencies or market shortages. The Attorney General's Office has the authority to enforce these regulations and can take action against businesses that engage in price gouging. Additionally, during a declared state of emergency, the Governor may issue specific orders to prevent price gouging of essential goods and services. Violations of these laws can result in penalties, including consumer restitution, civil penalties, and injunctions to prevent further violations.