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 Michigan, price gouging is addressed under the Michigan Consumer Protection Act (MCPA). The Act prohibits charging consumers a price that is grossly in excess of the price at which similar property or services are sold. During a state of emergency or disaster declared by the Governor, additional protections against price gouging may come into effect. These protections make it unlawful to charge excessively high prices for products or services that are vital to the health, safety, or welfare of consumers. The Attorney General of Michigan is empowered to investigate and prosecute instances of price gouging, and consumers who believe they have been victims of price gouging are encouraged to file a complaint with the Attorney General's office. Violations of the MCPA can result in civil penalties, including fines and injunctions to prevent ongoing violations.