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 Washington State, price gouging is addressed under the Consumer Protection Act, RCW 19.86.020, which prohibits unfair or deceptive acts in trade or commerce. While there is no specific statute in Washington that defines price gouging, the Attorney General's office can investigate and take action against businesses that engage in price increases that are deemed excessive during emergencies or disasters. This is particularly relevant when a state of emergency is declared by the Governor. During such times, the Governor may issue an emergency proclamation that prohibits price gouging on necessary goods and services. Violations of such proclamations can result in enforcement actions, including lawsuits by the Attorney General's office, and businesses may face penalties for unfair pricing practices.