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 Maryland, price gouging is addressed under the Maryland Consumer Protection Act. The law prohibits retailers from unjustifiably increasing the sale price of goods and services during a state of emergency declared by the Governor or the President. The price increase is considered unjustifiable if it is excessive and not attributable to additional costs imposed on the retailer by the supplier or if the increase in price is higher than the percentage increase in the cost of the goods or services to the retailer. The law aims to protect consumers from exploitative pricing practices during times of crisis when they are most vulnerable. Violations of the anti-price gouging regulations can result in enforcement actions by the Maryland Attorney General's office, including penalties and restitution for consumers.