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price gouging

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 Rhode Island, price gouging is regulated under the Rhode Island General Laws Section 6-13-21, which prohibits sellers from charging an unconscionable price for any essential commodity during a declared state of emergency. This law is designed to prevent businesses from taking unfair advantage of consumers by significantly increasing prices on items like food, water, fuel, and medical supplies during times of crisis. The determination of what constitutes an 'unconscionable price' takes into account the price of the goods or services in question immediately before the emergency declaration and the additional costs incurred by the seller in connection with the sale of the goods or services. Violations of this statute can result in penalties, including fines and other legal actions. It's important to note that these regulations are only in effect during a declared state of emergency by the Governor or by the President of the United States.

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Consumers

price gouging

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Rhode-Island State Code

Rhode-Island State Code

Consumers

price gouging

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