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 Virginia, price gouging is illegal during a time of disaster. The Virginia Post-Disaster Anti-Price Gouging Act, which is part of the Virginia Consumer Protection Act, comes into effect upon the declaration of a state of emergency by the Governor or the President. Once in effect, it prohibits suppliers from charging unconscionable prices for necessary goods and services, including but not limited to water, ice, food, generators, batteries, and home repair materials. An 'unconscionable price' is a price that either grossly exceeds the price charged for the same or similar goods or services during the 10 days prior to the emergency declaration or is grossly in excess of the price for the same or similar goods or services in the trade area. The law allows the Virginia Attorney General to investigate and bring actions against businesses suspected of price gouging, with the possibility of civil penalties and restitution to consumers.